Bitcoin's Bearish Turn After Powell's Remarks

Bitcoin, valued at around $111,223.57, has faced a setback following Federal Reserve Chair Jerome Powell's seemingly positive comments about a potential rate cut next month. Although BTC peaked near $117,440 late last week, it has since retreated to just above $112,000.

Analysis of recent price movements suggests that BTC is forming a concerning trend: a lower high that closely aligns with a significant resistance line established during the bullish run from April. This pattern could indicate that bearish sentiment is taking hold, especially as the Guppy Multiple Moving Average (GMMA) shows signs of a potential bearish shift.

Moreover, the MACD histogram has opened this week below zero, a sign that downward momentum may be gaining traction. So, what do we make of a market that resists a rally even in the wake of positive developments like Powell's speech? That's a question for traders to ponder.

Key support for Bitcoin is found at $110,756, just above the Ichimoku cloud boundary, with more critical support likely around the 200-day moving average near $100,000. To reignite bullish prospects, reclaiming the $117,440 high is crucial.

Ether's Uncertain Future: Signs of Weakness

On the other hand, Ether (ETH) is also displaying troubling signs. Over the weekend, it formed a doji candle with an extended upper wick, indicating indecision at its record highs. This pattern reveals a battle between buyers and sellers, with bears pushing back strongly enough to ensure that shut down bullish momentum.

While the doji alone doesn't signal an outright reversal, it does suggest caution as it often precedes either consolidation or a reversal. Compounding this issue, the Relative Strength Index (RSI) has printed lower highs recently, contradicting ETH's latest gains—often a precursor to price corrections.

At the moment, Ether has dipped about 3%, currently trading at $4,624. Support levels are identified at $4,065, the key price from which ETH bounced higher on August 20.

Support: $4,065, $4,000, $3,805 (the 50-day SMA).

Resistance: $5,000, and the all-time highs.

Conclusion: What Lies Ahead for Both BTC and ETH?

With both Bitcoin and Ether displaying signs of weakness—despite an environment that could be favorable for growth—traders are left to navigate a landscape fraught with uncertainty. Will they find the catalysts needed to move higher, or are we looking at a market that could be headed for further decline?