Bitcoin Stalls: Bearish Signals Despite Positive News
Bitcoin: Powell's Speech Fails to Ignite Rally
Bitcoin (BTC) has retreated to levels seen before Federal Reserve Chair Jerome Powell's remarks on Friday, despite initial optimism for a potential September rate cut. After peaking around $117,440, Bitcoin is now trading just above $112,000.
Technical analysis of the daily chart reveals a concerning pattern: the pullback from $117,000 has formed a lower high, close to the resistance line defined by the previous bullish trendline from April lows. This reinforces the prior trendline breakdown, suggesting continued bearish pressure.
The Guppy Multiple Moving Average (GMMA) indicator is also on the verge of confirming a bearish momentum shift, with short-term exponential moving averages (white band) about to cross below the longer-term averages (red band).
Adding to the bearish outlook, the MACD histogram on the weekly chart has started the new trading week with a sub-zero reading, indicating potentially accelerating downward momentum.
A market that fails to sustain a rally on positive news and exhibits bearish technical patterns raises concerns about its underlying strength. The coming days will be crucial in determining whether this is a temporary setback or the start of a deeper correction.
Key Bitcoin Levels to Watch:
- Support: $110,756 (Ichimoku cloud lower boundary), $100,756, $100,000 (200-day SMA)
- Resistance: $117,440 (Friday's high), $120,000, $122,056
Ether: Momentum Loss at Record Highs
Ether (ETH) formed a doji candle with a prominent upper wick on Sunday, signaling market indecision at record highs. This pattern indicates a stalemate between buyers and sellers.
The long upper shadow suggests that bulls faced significant resistance, with bears pushing the price back down before the close. While a doji doesn't guarantee a reversal, it indicates uncertainty and a potential loss of upward momentum, warranting caution.
A pullback appears increasingly likely, as the 14-day relative strength index (RSI) continues to print lower highs, contradicting the new price highs. This bearish divergence often precedes corrections.
At press time, Ether is trading 3% lower on the day at $4,624, with charts indicating support at $4,065, the level from which ETH rebounded on August 20.
Key Ether Levels to Watch:
- Support: $4,065, $4,000, $3,805 (50-day SMA)
- Resistance: $5,000, record highs