Bitcoin has had one of the most unstable weeks of recent months, marking a sharp swing with both the bull and the bear on the edge. Major cryptocurrencies spiked to a new all-time high of nearly $124,000, but only fell below the $115,000 level within days. This rapid reversal highlighted the vulnerability of momentum in overheated conditions, but also highlighted the market’s ability to rebound when macroeconomic catalysts emerge.
The turning point came during a speech by Federal Reserve Chair Jerome Powell at Jackson Hole. There, key statements sparked immediate market responses. Powell suggests potential changes in policy stances, suggesting that limiting conditions can be adjusted immediately. Within minutes, risky assets, including Bitcoin, surged as liquidity returned to the market, sparking new optimism throughout the encrypted space.
Following the speech, Bitcoin regained its strength and climbed above the $115,000 support zone. This recovery will keep traders focused on the next level of resistance that could determine their short-term trajectory. The broader crypto market followed suit, with altcoins showing new momentum as investors reassigned capital.
Bitcoin futures respond to Powell’s Jackson Hole speech
According to top analyst Darkfost, Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole served as a powerful catalyst for the Bitcoin futures market. In his remarks, Powell said, “The changing balance of baseline outlook and risks due to policy in restrictive areas requires policy stance.” This subtle yet influential statement suggests the possibility of easing the Fed’s monetary policy, and soon sparked a surge in optimism across global markets.
The code response was quick and decisive. Within just 15 minutes of Powell’s speech, more than $300 million in fresh liquidity flooded Binance’s Bitcoin futures market. This sudden influx brings Binance BTC to approximately $13.3 billion. It emphasizes the reliance on macroeconomic cues in the crypto derivatives market.
DarkFost noted that the surge highlights the power of central bank communications to drive the market, particularly in an environment in which liquidity conditions play a critical role in speculative demand. Bitcoin’s sharp response reflects wider risk-on sentiment as it positioned itself for the potential for loose financial conditions that favor high yields and alternative assets like BTC.
The event also reaffirmed the volatility of Bitcoin futures. In this case, an open shift in interest can rapidly amplify price movements. In this case, the demand spikes have strengthened bullish sentiment across the market as BTC regained its main support zone.
Important resistance in BTC testing
Bitcoin’s four-hour chart shows strong volatility following Powell’s Jackson Hole statement, with BTC rebounding sharply from its lows between $112,000 and nearly $116.5,000. This sudden spike highlights how macroeconomic catalysts can cause liquidity inflows within minutes. The bounce coincides with the recovery of the 200-period SMA (red line) that is just below the current price and serves as important short-term support.
Despite the rally, the BTC is below the recent $123,217 resistance. This is the level that caps the price twice the cycle. The medium-term structure still suggests integration, with 50-SMA (blue) and 100-SMA (green) converging between about $116,000 and $117,000 creating a decision zone for the Bulls and Bears. Keeping above this area could pave the way for another retest of highs, but if you don’t keep the risk, you’ll have a deeper pullback to the $112,000 area.
Momentum metrics suggest that buyers are trying to regain control, but price action has not yet shown a clean breakout. For the Bulls, protecting between $115K and $116K is key to maintaining a bullish structure. However, the bear will increase the downside pressure, looking for rejection under the SMA.
Dall-E special images, TradingView chart
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