Bitcoin Correction Deepens Amid Fed Rate-Cut Optimism
Bitcoin correction intensified after an initial $5,000 rally driven by Fed Chair Jerome Powell’s dovish Jackson Hole comments. BTC surged above $112,000 but has since plunged to around $110,650, breaching key support at $112K and eyeing the next floor at $109K. Short-term Stochastic RSI on the 8-hour chart is near oversold levels, suggesting a potential bounce. On the daily timeframe, price respects the 23.6% Fibonacci retracement from April to August, and the RSI hovers near its 40–43 support zone—areas that have historically triggered rebounds. However, the weekly inverse head and shoulders pattern is at risk of invalidation if BTC fails to hold $112,000. Weekly Stochastic RSI is resetting lower, indicating sellers’ momentum, but a sustained hold above support could fuel the next bullish leg. Traders should monitor these technical levels for signs of a resilient rebound or deeper correction.
Bearish
The intensified Bitcoin correction, marked by breaches of the $112K support and a slide toward $109K, signals prevailing bearish pressure. While short-term indicators like the 8-hour Stochastic RSI point to an oversold bounce, the broader weekly setup—an at-risk inverse head and shoulders pattern and resetting Stochastic RSI—underscores potential for further declines. Historically, post-Fed dovish rallies have given way to deeper pullbacks when key technical levels fail to hold. In the short term, traders may capitalize on bounce plays around Fibonacci and RSI support zones; in the medium to long term, sustained weakness below $112K could trigger extended sell-offs, reinforcing a bearish outlook.