The cryptocurrency market continues to underperform, with over 2.5% of the total market cap lost in the last 24 hours. The bearish performance comes despite Bitcoin’s all-time high last week, with some analysts suggesting that the market is experiencing profit-taking. Powell’s Jackson Hole speech makes traders nervous The primary event this week is the Fed Chair’s upcoming speech on August 22nd, as it could clarify rate-cut timing. The event is causing nervousness among traders and has caused the market to bleed over the last few days. Bitcoin, the leading cryptocurrency by market cap, has lost 2.5% of its value and now trades at $113,400 per coin. The cryptocurrency briefly dropped below $113k but has slightly bounced back, with altcoins also recording huge losses. The Fed is expected to release minutes from the FOMC meeting held July 29–30 later today. The minutes will offer insight into policymakers’ tariff and inflation debates. This is followed by the Jackson Hole symposium from Aug. 21–23. The event will see central bankers gather, with Powell’s keynote the major takeaway for traders. The FOMC minutes and Powell’s speech could define market expectations for the September policy meeting. Despite BTC dropping below $114k, analysts believe that the decline shows BTC’s resilience. In an email shared with Invezz, Ruslan Lienkha, chief of markets, YouHodler, pointed out that Bitcoin has corrected only 8% after its latest ATH, compared to 30% in January, suggesting a maturation of the asset class. He added: I would be cautious about calling this increased resilience. The current correction is still unfolding, and it remains uncertain at which levels it will ultimately stabilize. It is also essential to consider the broader macroeconomic backdrop. A significant correction in equity markets, for example, could trigger a deeper pullback in Bitcoin as well. That said, it is true that Bitcoin’s historical volatility has been gradually declining over time. This reflects the asset’s maturation process, although the shift toward a more stable market structure is gradual and measured in years rather than months. BTC could dip to $111k before rallying higher The BTC/USD 4-hour chart is bearish but inefficient, thanks to Bitcoin’s underperformance since the start of the week. The technical indicators have switched bearish since BTC set a new all-time high last week. The RSI of 34 shows that BTC is now close to the oversold region. The MACD lines crossing over into negative territory indicate a fading bullish momentum. This could see BTC face further selling pressure before bouncing back. At press time, BTC is trading at $113,594. The coin bounced back from the low of $112,575 created a few hours ago. If the recovery persists, BTC could hit the first major resistance level at $116,650 over the next few hours. The return of a bullish momentum would allow BTC to reclaim the $119k weekend high over the next few days. However, the trend has switched bearish, suggesting that BTC could see further selling pressure before resuming its rally. BTC could grab liquidity around the $111,771 low to enable it to prepare for another leg up. However, failure to defend this level could see BTC drop to the $107 support zone for the first time since July 9. The post BTC drops to $113k as Powell's Jackson Hole speech approaches: what to expect appeared first on Invezz
