Key Insights
- Bitcoin price jumped after FED Chair Jerome Powell hinted at an interest rate cut for September.
- Short liquidations came in at more than $379 million over the last 24 hours.
- Global catalysts, including a proposed Bitcoin reserve in the Philippines, strengthen long-term confidence.
Bitcoin price surged to $117,300 this week as markets reacted to comments from Federal Reserve Chair Jerome Powell. Powell hinted during his Jackson Hole speech at a possible September rate cut. This triggered a strong rally across the crypto sector.
Analysts See Trend Reversal for Bitcoin Price
BTC climbed more than 4% in a single day, and recovered from lows near $111,600. Data from Coinglass showed that this move liquidated $470 million in shorts, with Bitcoin alone accounting for $209 million.
Ethereum registered the worst with $382 million in liquidations, after jumping nearly 15% to $4,760. The sudden rise in prices caught many traders by surprise. Over 150,000 positions were wiped out during the rally as investor sentiment flipped from cautious to bullish.
Market analysts believe the bounce above $117,000 may start a fresh uptrend for Ethereum. Michael van de Poppe pointed out that the Bitcoin price swept below $112,000 before staging an immediate reversal.
“Uptrend is back,” van de Poppe wrote to his followers. Other analysts agree that short-term pullbacks are still possible, but the general market direction is higher.
Jelle, another well-followed trader, warned of a possible retracement after the pump. However, he added that the market’s appetite for higher prices is clear.
Predictions in general for the next few months have been bullish. Analyst BitQuant reiterated that the top of the Bitcoin cycle is as high as $145,000. On the other hand, Bitwise’s André Dragosch says that BTC could push toward $200,000 by year-end.
More Developments Support Bitcoin
More than Powell’s comments, general market events have added to the strength of the Bitcoin price lately. For example, lawmakers introduced a bill in the Philippines that proposed a national Bitcoin reserve of 10,000 BTC. This reserve is worth roughly $1.1 billion at current prices.
According to the plan, the Bangko Sentral ng Pilipinas will purchase 2,000 BTC annually over five years. Holdings are kept in trust for two decades. Representative Migz Villafuerte described Bitcoin as “digital gold.”
She argued that the reserve would strengthen BTC as a national financial security. If the proposal passes, the Philippines’ holdings would beat El Salvador’s stash of 6,276 BTC. This could put it close to Bhutan’s 10,565 BTC.
Meanwhile, Taiwan’s crackdown on a recent $72 million crypto money-laundering case has also been a booster for investor confidence.
Authorities have charged 14 individuals linked to illegal crypto exchanges CoinW and CoinThink Technology. They also seized millions in assets, including Bitcoin.
Bitcoin Price’s Technical Outlook
From a technical perspective, the Bitcoin price has bounced strongly off the $112,000 support. It has reclaimed its 50-period EMA near $115,600. Also, its recent intraday peak of $117,300 was a direct test of the descending channel’s upper boundary.
This upper boundary has controlled Bitcoin’s price action since mid-August, and technical indicators are now showing signs of further upside.
The RSI has recovered to 55, too, and the market is currently neutral despite the price increase. Bitcoin price recently formed a bullish hammer near support, which two consecutive green candles have followed.
If this turns into a “three white soldiers” formation, it would confirm a strength transfer to the buyers. Immediate resistance sits between $117,000/$119,000. A confirmed breakout above could open the path toward $121,800 (maybe even $130,000).
Ivan Petrov is a seasoned journalist with deep insights into Russia’s dynamic crypto landscape. His work focuses on market dynamics and the transformative potential of blockchain technology, making him a go-to expert for understanding Russia’s digital financial innovations.
