Bitcoin News Today: Bitcoin's Fate Hangs on $114,600 as Powell's Words Loom Large

Bitcoin’s price is currently on the brink of a pivotal moment, as it hovers near critical support levels that could determine the next phase of its trajectory. With the cryptocurrency trading around $114,600, the market is closely monitoring whether this level can hold firm. A successful defense could potentially propel Bitcoin toward higher resistance levels, including $117,600 and beyond. Conversely, a breakdown below $114,600 could expose the price to further declines, potentially taking it down to $111,500 or even $106,000.

Over the past week, Bitcoin has experienced a sharp drop, falling from a high of approximately $124,000 to around $112,000. This decline was driven by a combination of weak economic data, reduced expectations for an interest rate cut from the U.S. Federal Reserve, and increased profit-taking by large investors. ETF outflows have also played a role, with $1.17 billion in outflows recorded over five trading days—the longest stretch of declines since April. Despite these pressures, signs suggest the bearish momentum may be slowing. The number of open positions in crypto futures markets remains steady, and large investors have been accumulating Bitcoin, a pattern historically associated with recovery phases.

The macroeconomic environment, particularly the anticipated speech by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, continues to dominate market sentiment. While the market expects a 75% chance of a rate cut in September, uncertainty remains high. If Powell adopts a neutral or hawkish stance, Bitcoin and other risk assets could face additional selling pressure. On the other hand, a dovish tone could encourage a buying surge, especially if it reinforces expectations of monetary easing. Market participants are also closely watching macroeconomic data in the lead-up to the September 17 rate decision, as it will further shape expectations.

From a technical standpoint, Bitcoin is currently near the 3-month Exponential Moving Average (EMA), which has historically acted as a dynamic support level. In June, Bitcoin rebounded from this EMA and returned to an upward channel. If the current support at $114,600 holds, the price could stabilize and test the $117,300 resistance level. A successful breakout from this zone could set the stage for a move toward $120,000 and $125,000. However, if the support fails and the price falls below the EMA at $111,500, a pullback toward $106,000 could be on the horizon.

In addition to support and resistance levels, market participants are also tracking sentiment indicators. The cryptocurrency fear and risk appetite index remains neutral, indicating a balanced outlook. The continued preference for call options in the options market also suggests a bullish bias among investors, who are hedging against potential volatility while maintaining long-term optimism. These factors, combined with the broader macroeconomic backdrop, suggest that Bitcoin’s near-term direction will likely be dictated by developments in the interest rate cycle and key technical levels.

Bitcoin’s recent performance has diverged from some of its layer-1 competitors, particularly Ethereum. While Ethereum has surged over 10% following Powell’s Jackson Hole remarks, Bitcoin has struggled to maintain momentum, retreating to $115,600 after a brief rebound to $117,370. Analysts attribute this underperformance to weak demand from institutional investors on platforms like Coinbase, as well as the lack of inflows into Bitcoin ETFs. In contrast, Ethereum ETFs have seen strong inflows, highlighting a shift in investor preferences toward altcoins and smart contract platforms. This trend underscores the broader narrative shift within the crypto market, with Ethereum and its ecosystem playing a central role in capturing market attention.

Source: [1] Bitcoin Nears Critical Support With Eyes on Powell's Jackson Hole Speech (https://www.investing.com/analysis/bitcoin-nears-critical-support-with-eyes-on-powells-jackson-hole-speech-200665741) [2] Bitcoin on the Edge: Key Support Could Trigger a Major Breakout (https://coindoo.com/market/bitcoin-on-the-edge-key-support-could-trigger-a-major-breakout/) [3] Bitcoin Dips to $115K : What's Next for the Price Targets ? (https://investx.fr/en/crypto-news/bitcoin-plummets-to-115000-what-are-the-next-targets/) [4] Bitcoin Price Regains Strength – Can the Rebound Turn Explosive? (https://cryptorank.io/news/feed/12c58-bitcoin-price-regains-strength-115k) [5] A Comparative Analysis between BTC and ETH (https://www.tokenmetrics.com/blog/bitcoin-vs-ethereum?74e29fd5_page=2) [6] 3 Reasons Bitcoin Price Failed to Cross $120K Despite ... (https://finance.yahoo.com/news/3-reasons-bitcoin-price-failed-174121864.html) [7] Bitcoin vs. Ethereum: The Complete Guide (2025) (https://supra.com/academy/bitcoin-vs-ethereum/)