This past week was one of the most dramatic for Bitcoin in recent months, as the cryptocurrency swung sharply between record highs and notable pullbacks.
BTC surged to a new all-time high near $124,000 before tumbling below $115,000, reminding traders of just how sensitive momentum can be in overheated markets.
Yet, the swift rebound also underscored how quickly the crypto market can recover when macroeconomic events inject confidence.
Powell’s Jackson Hole Speech Sparks Crypto Surge
The turning point came during Federal Reserve Chair Jerome Powell’s highly anticipated Jackson Hole address.
Traders reacted immediately when Powell hinted at a potential adjustment in policy, suggesting that restrictive monetary conditions could soon ease.
The market responded quickly, with risk assets—including Bitcoin—soaring as liquidity flooded back.
Following the speech, Bitcoin climbed back above the $115K support zone, reigniting bullish sentiment.
Altcoins also benefited, showing renewed momentum as investors shifted capital across the crypto space.
Bitcoin Futures See Massive Inflows
Top analyst Darkfost noted that Powell’s remarks acted as a powerful catalyst for Bitcoin futures.
Within just 15 minutes, over $300 million in fresh liquidity flowed into Binance’s BTC futures market, pushing open interest to around $13.3 billion.
Darkfost explained that this shows how sensitive crypto derivatives are to central bank signals, particularly in an environment where liquidity drives speculative demand.
The rapid surge reinforced risk-on sentiment, with traders positioning for the possibility of looser monetary policy favoring higher-yielding assets like Bitcoin.
BTC Faces Key Resistance Levels
Looking at the charts, Bitcoin rebounded sharply from lows near $112K to $116.5K following Powell’s speech.
This move coincided with BTC reclaiming its 200-period SMA, a critical short-term support level.
However, BTC remains below its recent $123,217 resistance, a ceiling that has capped the price twice in this cycle.
Mid-term indicators, including the 50-SMA and 100-SMA, converge around $116K–$117K, forming a crucial decision zone.
Holding above this range is key for bulls, while any rejection could trigger a pullback toward $112K.
Momentum indicators suggest buyers are attempting to regain control, but a clean breakout is not yet confirmed.
The next few sessions will likely determine whether BTC can mount another challenge to its all-time highs.
Understanding the Volatility
Bitcoin’s sharp movements highlight both the opportunities and risks in the crypto market.
Macroeconomic catalysts, particularly statements from central banks, can inject significant liquidity and move prices within minutes.
Traders and investors alike are reminded that in the crypto world, momentum can shift as quickly as it builds.
Commitment to Accurate Reporting
At Bitcoinist, all editorial content is carefully reviewed by technology experts and seasoned editors.
Every article is thoroughly researched and sourced to ensure accuracy and reliability, giving readers confidence in the quality and relevance of the information they receive.
