Bitcoin: A Bearish Turn After Powell's Remarks

Bitcoin, currently hovering just above $112,000 after reaching a high of about $117,440, is showing signs of weakness. Following Federal Reserve Chair Jerome Powell's dovish comments last Friday, which suggested a possible rate cut, Bitcoin has retraced to levels not seen in days. The charts reveal a concerning trend: the recent peak has formed a lower high, indicating potential bearish momentum.

Technical analysis shows that this lower high further complicates the market's recovery prospects, suggesting it may struggle to rally on positive news. The Guppy Multiple Moving Average indicates a forthcoming shift towards bearish momentum, as short-term moving averages prepare to dip below long-term ones.

Currently, key support levels are set at $110,756 (the Ichimoku cloud's lower boundary) and a critical zone around $100,000, marked by the 200-day simple moving average. To regain any bullish traction, Bitcoin must reclaim the $117,440 peak.

Ethereum: Signs of Weakness Amid Uncertainty

Ethereum managed to create a doji candle, a pattern that typically indicates buyer-seller indecision, at record highs over the weekend. This formation suggests that while bulls attempted to push the price higher, they faced significant resistance from bears who managed to pull prices back.

Despite the lack of definitive reversal signals, the doji is a cautionary indicator of a potential loss in upward momentum. This weekend's trading saw Ether falling about 3% to $4,624, with the 14-day relative strength index showing lower highs, signaling bearish divergence.

Support for Ethereum is found at $4,065, which is vital as it is the level from which ETH surged earlier in August. Below that, $4,000 and $3,805 (the 50-day SMA) are also important support levels to watch.

Market Outlook: A Puzzling Stalemate

In a baffling turn of events, the market remains stagnant despite favorable catalysts. What does this say about the current state of Bitcoin and Ethereum? Investors are left to ponder the implications of a market that fails to gain momentum in the face of positive news. As we move forward, careful monitoring of key resistance and support levels will be imperative for traders navigating this unpredictable landscape.