Bitcoin News Today: Bitcoin traders watch $110k and $120k as Fed event looms and volatility rises

Bitcoin traders are closely monitoring two key price levels amid shifting market sentiment and growing uncertainty around the Federal Reserve’s upcoming remarks at Jackson Hole [1]. Options market positioning has turned defensive, with heavy volume and open interest concentrated at the $110,000 and $120,000 strike prices, indicating critical support and resistance levels [1]. A negative 25 Delta Skew suggests traders are paying more for call options, showing a bullish bias, although the Skew has declined slightly in the past 24 hours, hinting at a reduced willingness to hold positions ahead of the Fed’s event [1].

Bitcoin has retreated to around $113,000, a two-week low, as traders brace for the potential impact of Powell’s speech [1]. The price is testing this level for resilience amid ETF outflows and a broader risk-off environment [3]. A sustained move below $113,000 could push the price closer to $110,000, where increased liquidity may offer a short-term floor [4]. Conversely, a retest and successful hold above $114,000 would suggest bearish pressure is easing and the market remains cautiously optimistic [8].

Analysts have emphasized the importance of these price levels as potential catalysts for a clearer directional move [1]. The $110,000 level, in particular, has been described as a potential entry point for institutional buyers, while the $115,000 level remains under pressure, with traders struggling to maintain a foothold above it [1][4]. This has led to increased volatility and a lack of consensus among market participants, with both bullish and bearish strategies being adopted.

The broader macroeconomic environment has also contributed to the uncertainty. Recent producer price index data and rising core inflation have reduced the market’s expectation for an aggressive rate cut in September, with the CME FedWatch Tool showing a 75% probability of a quarter-point cut—down from over 90% a week earlier [1]. A neutral tone from Powell could disappoint markets already pricing in a cut, potentially weighing further on Bitcoin [1].

James Toledano, COO at Unity Wallet, noted that volatility positioning is likely to remain defensive through the speech, with either renewed direction or a return to status quo expected afterward [1]. Haonan Li, CEO of Codex, expects Powell to maintain a data-dependent stance, avoiding a clear commitment to a September rate cut [1]. If the market’s consensus is proven incorrect, Li warned, risk assets like Bitcoin and Ethereum could face further downward pressure [1].

For short-term investors who purchased Bitcoin over the past 30 to 90 days, the recent price action has resulted in losses or near-breakeven returns [1]. As the market consolidates in the $113,000–$115,000 range, the coming days will be crucial in determining the next move. A decisive break above or below either of the two key levels could signal a more pronounced directional shift [1].

Source:

[1] Decrypt, [https://decrypt.co/336363/two-bitcoin-price-levels-sophisticated-traders-are-watching-out-for](https://decrypt.co/336363/two-bitcoin-price-levels-sophisticated-traders-are-watching-out-for)

[2] AMBCrypto, [https://ambcrypto.com/bitcoins-price-drops-below-115k-watch-out-for-these-4-reversal-signs/](https://ambcrypto.com/bitcoins-price-drops-below-115k-watch-out-for-these-4-reversal-signs/)

[3] FastBull, [https://m.fastbull.com/analyst-article/bitcoin-tests-113k-support-amid-etf-outflowsbullish-reversal-4340737_0](https://m.fastbull.com/analyst-article/bitcoin-tests-113k-support-amid-etf-outflowsbullish-reversal-4340737_0)

[4] TradingView, [https://in.tradingview.com/news/cointelegraph:ea852ef29094b:0-bitcoin-eyes-liquidity-at-110k-watch-these-btc-price-levels-next/](https://in.tradingview.com/news/cointelegraph:ea852ef29094b:0-bitcoin-eyes-liquidity-at-110k-watch-these-btc-price-levels-next/)

[8] TradingView, [https://www.tradingview.com/news/cointelegraph:1553213db094b:0-bitcoin-price-dip-hinges-on-114k-as-markets-shrug-off-us-eu-trade-deal/](https://www.tradingview.com/news/cointelegraph:1553213db094b:0-bitcoin-price-dip-hinges-on-114k-as-markets-shrug-off-us-eu-trade-deal/)