Bitcoin Price Holds at $112K Support Ahead of Fed Speech
Bitcoin price bounced off the critical $112,000 support level after testing it late Thursday. The short-term rebound broke a descending trendline and formed a potential double bottom. On the daily chart, an inverse head and shoulders pattern remains valid, targeting $150,000 if it completes. However, weekly indicators are bearish: the Stochastic RSI and MACD are trending down, and the RSI rejected from a descending trendline. Market sentiment hinges on Federal Reserve Chair Jerome Powell’s upcoming speech. Traders fear he may rule out September rate cuts, which could push Bitcoin price below support. Conversely, hints of a cut could spark a fresh rally. Overall, volatility is expected until the Fed’s comments, leaving Bitcoin price in a tight range.
Neutral
The news presents mixed signals for traders. The bounce from $112K support and a valid inverse head and shoulders pattern offer bullish potential toward $150K. Conversely, weekly technical indicators—Stochastic RSI, MACD, and RSI—are bearish, suggesting downward pressure. The outcome hinges on Fed Chair Powell’s speech: a hint at rate cuts could trigger a rally, while a no-cut signal may lead to renewed sell-offs. Historically, Bitcoin has seen heightened volatility around Fed announcements, with short-term uncertainty and potential for sharp moves in either direction. Traders should remain cautious, monitoring technical levels and Fed cues for both short-term adjustments and longer-term positioning.