Bitcoin Price Analysis: BTC Rebounds To Reclaim $116,000 Following Powell’s Jackson Hole Speech
Bitcoin (BTC), the broader crypto market, and crypto stocks surged after Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium. Investors were braced for a hawkish stance but were surprised after Powell suggested interest rate cuts could be coming soon.
The speech breathed new life into BTC, with the flagship cryptocurrency surging past $116,000 from a low of $111,678. The flagship cryptocurrency is up over 2%, trading around $115,579.
Bitcoin (BTC) Surges After Powell Speech
Bitcoin and crypto investors heaved a sigh of relief after Fed Chair Jerome Powell’s speech in Jackson Hole on Friday. Powell hinted at the possibility of a rate cut as early as next month, boosting market sentiment. As a result, BTC, which was trading below $112,000, surged to reclaim $115,000 and move to its current level of $115,600, up over 2% in the past 24 hours.
The Federal Reserve has kept interest rates steady throughout the year, citing a strong jobs market and concerns about inflation fueled by President Trump’s tariff policies. However, the Jackson Hole speech indicated that Powell could be receptive to easing interest rates. Powell stated in his speech on Friday morning,
“Overall, while the labor market appears to be in balance, it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers. This unusual situation suggests that downside risks to employment are rising. The shifting balance of risks may warrant adjusting our policy stance.”
Fundstrat’s Tom Lee called Jerome Powell’s speech “dovish as can be expected.”
The crypto market spent all week sweating about Powell’s speech, as traders positioned themselves for a hawkish tone, selling their BTC in anticipation of a decline. However, the prospect of lower interest rates brought momentum back to the flagship cryptocurrency. Analysts now expect the Federal Reserve to lower its target rate in September.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has made a stunning recovery after Fed Chair Jerome Powell’s Jackson Hole speech. The flagship cryptocurrency was trading below $112,000 on Friday but rebounded after the speech, surging nearly 4% to reclaim $116,000 and settle at $116,908 after reaching an intraday high of $117,416. The jump has allowed BTC to recoup almost all of the losses made during the week, with analysts stating the latest bounce could revive bullish momentum.
The jump past $117,000 triggered liquidations, taking out ask liquidity above this level. According to data from CoinGlass, $379.88 million in short positions were liquidated, with Ethereum (ETH) accounting for $193 million and BTC accounting for $56.4 million. Over $629 million was wiped out across the board in short and long positions. 150,217 traders were liquidated thanks to the sudden market recovery, which caught investors completely off guard.
According to Michaen van de Poppe, founder of MN Capital, BTC’s drop below $112,000 provided traders with a good opportunity to enter the market. Van de Poppe had told his followers to look out for a sweep beneath the August 3 low as a good area to accumulate.
“A small sweep took place and an immediate massive move upward on #Bitcoin. Uptrend is back.”
Another analyst stated that Bitcoin’s price could retrace following today’s pump, but could see higher prices.
“Likely retrace the pump for a reasonable percentage - but the intent is clear. This market wants higher.”
BTC started the previous weekend in the red, dropping nearly 1% and settling at $116,683. Sellers retained control on Saturday as the price registered a marginal decline to $116,492. However, it recovered on Sunday, rising 2.42% to cross $119,000 and settle at $119,309. BTC reached an intraday high of $122,319 on Monday as bullish sentiment intensified. Despite the positive start, it lost momentum and settled at $118,701, ultimately dropping 0.51%. The price recovered on Tuesday, rising 1.19% to cross $120,000 and settle at $120,113. Bullish sentiment intensified on Wednesday as BTC rallied, rising nearly 3% to cross $123,000 and settle at $123,365. Despite the positive sentiment, the price tanked on Thursday, dropping over 4% to a low of $117,208 before settling at $118,389.
Source: TradingView
Sellers retained control on Friday as BTC fell 0.80% to $117,436. Price action was positive over the weekend as BTC registered marginal increases on Saturday and Sunday, settling at $117,488. The price was back in the red on Monday, dropping 1.02% to $116,286. Bearish sentiment intensified on Tuesday as BTC fell almost 3% and settled at $112,856. Despite the selling pressure, BTC recovered on Wednesday, rising 1.26% to reclaim $114,000 and settle at $114,276. However, it was back in the red on Thursday, dropping 1.57% to $111,964 before settling at $112,480. The flagship cryptocurrency rallied on Friday following Jerome Powell’s Jackson Hole speech, climbing nearly 4% to surge past $116,000 and settle at $116,908 after reaching an intraday high of $117,416. However, BTC is back in the red during the ongoing session, down over 1% and trading around $115,540.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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