Bitcoin Retreats to Pre-Powell Levels, Ether Signals Momentum Fade at Highs
Bitcoin dips below key resistance as bearish technical signals take shape, while Ether posts a warning doji after touching new all-time highs.
Bitcoin: Post-Rally Reversal Strengthens Bearish Outlook
Bitcoin (BTC) has given back its Friday gains, sliding to just above $112,000—levels last seen before Federal Reserve Chair Jerome Powell’s dovish comments raised expectations for a potential September rate cut.
BTC had surged to $117,440 post-speech, but failed to hold ground. The reversal carved out a lower high near a critical resistance zone, confirming the breakdown of the rising trendline from April.
Technical indicators are leaning bearish:
- The Guppy Multiple Moving Average (GMMA) shows short-term EMAs nearing a crossover below longer-term averages—suggesting a momentum shift.
- The weekly MACD histogram has flipped negative, pointing to growing downside pressure.
Support remains at $110,756 (Ichimoku cloud base), with key psychological and technical zones at $100,887 and $100,000. A break above $117,440 would be needed to revive the bullish case.
Ether: Doji Candle Hints at Fatigue Amid Record Run
Ether (ETH) printed a doji candlestick on Sunday at record price levels—indicating indecision after a sharp rally. The candle’s long upper wick reflects strong selling into strength, raising the risk of short-term correction.
Momentum signals also point to cooling:
- The 14-day RSI is showing bearish divergence, with lower highs in momentum despite higher highs in price.
At press time, ETH trades down 3% at $4,624, with support seen near $4,065—the level it broke out from on August 20. Deeper support lies at $4,000 and the 50-day SMA near $3,805. Immediate resistance remains at the $5,000 mark and new highs.
Market Outlook
Despite a dovish Fed tone, Bitcoin’s failure to sustain momentum and Ether’s loss of steam at record highs highlight a fragile market setup. Without strong follow-through, both assets may remain under pressure in the near term.
