Trading below $114,000 (down 3.2%), and at $4,200 (down 5.3%), with a sharper decline in XRP and ADA

The market has returned to decline from Bitcoin's peak of $124,000 as investors prepare for Powell's speech at Jackson Hole on August 22

The emergence of three potential scenarios: Diversification ($135,000 - $150,000), Balanced ($110,000 - $120,000), or Contraction (below $105,000)

Powell's impact on the market

The speech will focus on labor market dynamics and the likelihood of interest rate cuts in September

Cryptocurrency investors are monitoring indicators related to monetary policy direction and inflation rhetoric

The market has moved prices in advance in response to the possibility of a rate cut; any deviation may trigger significant volatility

Messages indicating economic weakness may indirectly support cryptocurrencies by reinforcing the narrative of fiat currency depreciation

Trading strategy framework

Monitoring key technical levels: support at $105,000 and resistance at $120,000 for Bitcoin

A breakout above $120,000 signifies optimism; while a drop below $105,000 could accelerate the downward trend

Considering the use of options to hedge positions before the speech

Preparing to exploit post-speech volatility using appropriate stop-loss orders

Market trends

Mixed reactions on the platform; some participants consider the event a 'great opportunity' for volatility traders

Warning voices alert to the possibility of a sell-off if Powell surprises the market with a hawkish speech

There is consensus on the need to manage risks carefully during this important market event