Bitcoin News Today: Bitcoin's price drop hinges on $114K as markets overlook the US-EU trade agreement ahead of Jackson Hole🤑
Bitcoin is facing critical price action around the $114,000 resistance level while traders largely overlook the recent US-EU trade agreement. Market attention is turning to the upcoming Federal Reserve's Jackson Hole symposium, with key BTC support and resistance levels under watch.
Key Points🤑
- $114,000 emerges as a decisive price level for Bitcoin as the weekly close approaches.🤑
- Buying liquidity clusters are located just below recent local lows, raising concerns about weakening market structure.
- Despite the US-EU trade agreement, the odds of a Fed rate cut in September have decreased.🤑
- Bitcoin volatility increased at the Wall Street open on Thursday as markets digested trade news.
Bitcoin struggles at $114K🤑
Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD is repeatedly testing without succeeding in breaking above $114,000, which remains strong short-term resistance.🤑
Popular analyst Rekt Capital highlighted on X (formerly Twitter):
"Bitcoin is clearly rejecting the ~114k resistance on the daily chart."🤑
He further emphasized that a convincing breakout and weekly close above $114,000 are crucial to avoid a further pullback.🤑
"$114k must be convincingly lost for BTC to drop. The weekly close relative to $114k will also be key."🤑
Trader Daan Crypto Trades has identified a critical local support zone between $109,850 and $111,900, warning that a drop below this range could weaken Bitcoin's market structure.🤑
"Generally, you don't want to see the price return to such a wide range/consolidation period after breaking out of it."
Order book and liquidity insights
CoinGlass trading data reveals a buying liquidity band starting at $112,900, aligning with recent daily lows and providing potential support.
Market reaction to the US-EU trade agreement and Fed outlook
The US-EU trade agreement had minimal impact on US stocks, with the S&P 500 and Nasdaq Composite trading sideways after the open.
Meanwhile, market expectations for a Federal Reserve rate cut in September have diminished:
- The Kalshi forecasting service shows an increase in the odds of not cutting rates to 36%, the highest since August 1.
- CME Group's FedWatch tool gives a 25% chance that rates will remain unchanged.
Mosaic Asset, a trading firm, noted in the latest Fed meeting minutes:
"A widening consensus that inflation risks outweigh employment concerns."
The upcoming Jackson Hole symposium, where Fed Chair Jerome Powell is expected to speak, is highly anticipated for potential hints on future monetary policy, according to Cointelegraph.
Summary🤑
Bitcoin's price action is closely tied to the resistance at $114,000 and support near $110,000–$112,900. A decisive weekly close above or below $114K will likely dictate the short-term trend. Despite the US-EU trade agreement, traders are 🤑focused on the Fed's Jackson Hole event, which could influence rate cut expectations and market direction.
