Bitcoin is grappling with a bearish tide, slipping back to pre-Powell levels after the Federal Reserve Chair’s dovish remarks initially buoyed hopes for a rate cut in September. As of today, BTC is hanging just above $112,000, a notable dip from its Friday peak of around $117,440. Analysts are buzzing about the technical implications of this retreat. For more on the initial surge, see Bitcoin price charges to $116K as Fed’s Powell hints at interest-rate cut.
Bitcoin’s Bearish Signals
The charts paint a telling picture. The pullback from $117,000 has carved out a lower high, nestled closely against the resistance line formed by an earlier bullish trendline dating back to April. This development isn’t just a blip. It underscores a breakdown in the prior trendline, hinting at the continuation of bearish price action.
Here’s the kicker: the Guppy Multiple Moving Average (GMMA) indicator is on the verge of confirming this bearish shift. The short-term exponential moving averages (the white band) are teetering on the edge of crossing below the longer-term averages (the red band). On a weekly scale, the MACD histogram began this week in the red, signaling potential downward momentum. For those watching the technicals closely, these patterns are like flashing neon signs.
BTC enthusiasts should keep an eye on key support levels. The $110,756 mark aligns with the lower boundary of the Ichimoku cloud, offering some technical solace. More robust support sits around the 200-day simple moving average near $100,000. To reignite the bulls, reclaiming the $117,440 high from Friday is crucial.
Ether’s Market Indecision
Meanwhile, Ether (ETH) is dancing to its own tune, albeit one marked by uncertainty. On Sunday, ETH printed a doji candle with a significant upper wick at record highs. This candlestick formation, born from the convergence of opening and closing prices, screams market indecision. The elongated upper shadow signals that despite the bulls’ push, bears managed to drag prices back down. This mirrors the recent trends observed in Ethereum, Bitcoin Spike After Powell Signals Interest Rate Cut.
While a doji doesn’t guarantee a reversal, it does spotlight the possibility of waning upward momentum. The 14-day relative strength index is echoing this sentiment, continuing to print lower highs—an ominous sign of potential corrections ahead. As a result, Ether slipped 3% to $4,624 at the time of writing.
For those tracking ETH’s support levels, $4,065 is a critical point, having served as a launchpad on August 20. Downside support extends to $4,000 and $3,805 (marked by the 50-day SMA), while resistance looms at the $5,000 mark.
A Market at Crossroads
Both Bitcoin and Ether are navigating choppy waters. The crypto market’s resilience—or lack thereof—in the face of favorable news like Powell’s speech is raising eyebrows. For BTC, the challenge is reclaiming lost ground, while ETH must overcome the shadow of indecision cast by its recent doji.
The coming weeks will be pivotal. With the potential for a Federal Reserve rate cut still in play, market players are left to ponder whether these bearish signals are mere pauses or precursors to more significant shifts. As always, the crypto world keeps everyone guessing.
Source
This article is based on: Bitcoin Chalks Out Lower Price High After Powell, Ether Prints Doji at Lifetime Peak
Further Reading
Deepen your understanding with these related articles:
- Bitcoin’s Jackson Hole Test: How Hard Could Powell’s Address Hit BTC Prices?
- Bitcoin Drops Below $114K, Ether Loses $4.2K as Jackson Hole Speech Might Bring Hawkish Surprise
- Bitcoin, Ethereum, XRP, BNB On The Rise Following Powell’s Fed Speech
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
