#bitcoin

$BTC Price Levels to Watch: $110K and $120K in Focus

Sophisticated traders are zeroing in on two critical Bitcoin price levels—$110,000 and $120,000—as key strikes in the options market signal a defensive shift. Heavy volume and open interest at these levels highlight strong demand and supply zones, per Deribit data.

With Bitcoin down nearly 5% this week to ~$113,000, market sentiment is cautious ahead of Fed Chair Jerome Powell’s Jackson Hole speech today. The CME FedWatch Tool shows a 75% chance of a quarter-point rate cut in September, but fading rate cut odds and rising inflation concerns are weighing on risk assets.

A negative 25 Delta Skew indicates traders are favoring call options, hinting at bullish hopes, but a slight dip in Skew suggests some are hesitant to hold positions through the speech. James Toledano of Unity Wallet told Decrypt, “Volatility positioning is likely to remain defensive,” with markets braced for either a breakout or consolidation post-Powell.

Haonan Li of Codex predicts a neutral, data-driven tone from Powell, which could disappoint markets banking on a clear rate cut signal. If expectations misalign, Bitcoin could face further pressure.

Keep an eye on $110K (support) and $120K (resistance) as traders navigate this high-stakes event. Volatility is coming—stay sharp!