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Key Highlights:
- Based on historical patterns from 2017 and 2021, the price of Bitcoin can see a further pullback. This may occur before hitting new all-time highs.
- Social media sentiment around Bitcoin has turned extremely negative, marking the lowest since June.
- With Jerome Powell’s Jackson Hole speech in focus, expectations for aggressive Fed rate cuts have weakened.
Bitcoin price continues to face selling pressure, dropping under $113,000 earlier today as market sentiment weakens. As BTC hits a two-week low, all eyes are currently on the Fed Jackson Hole meeting scheduled this Friday.
If Jerome Powell signals interest rate cuts at the September FOMC meeting, markets could react swiftly. A positive tone might trigger a quick rebound in investor sentiment.
Bitcoin Price Can Drop 20% As Per 2017, 2021 Chart Patterns
Bitcoin price has fallen by more than 5% since reaching an all-time high last week. With this, market analysts see further BTC pullback from here.
Popular crypto analyst Rekt Capital hints at the possibility of over 20% correction, with similar setups in 2017 and 2021. In his latest message on the X platform, Rekt Capital noted:
Popular crypto analyst Rekt Capital hints at the possibility of over 20% correction, with similar setups in 2017 and 2021. The analyst added that investors could see these pullbacks as a buy-the-dip opportunity instead of panic selling.
Rekt Capital said that after the previous pullbacks in 2017 and 2021, BTC rallied to new all-time highs. Another crypto analyst, Ali Martinez, shared key Bitcoin price levels for investors to watch.
Martinez highlighted BTC’s next key support zones based on MVRV price bands. These levels are $112,800, $91,400, and $70,000.
Crowd Sentiment on Bitcoin Price Flips Ultra Bearish
Amid the current selling pressure on BTC, Santiment reported that retail sentiment around the cryptocurrency has turned bearish.
The firm noted that the past 24 hours have seen the most negative sentiment on social media since June 22. This fear has led to widespread panic selling in BTC.
But analysts at Santiment noted that this is a perfect recipe for a Bitcoin price bounce back. Historically, such extreme pessimism has often signaled a buying opportunity for patient traders, Santiment added.
The analysts also pointed out that markets tend to move against the majority’s expectations when fear peaks. Furthermore, the dropping BTC exchange supply could act as another catalyst.
Popular market analyst Joe Consorti stated that the current Bitcoin price consolidation above $100K, is a very healthy sign. Consorti added:
Furthermore, CryptoQuant analysts point out the post-halving cycle. In the previous two bull cycles, the Bitcoin price began showing significant weakness roughly 480 days after the Halving.
If this trend repeats, the current correction could continue for another 2–4 weeks. Historical data point to a potential rebound and acceleration to new highs around Day 510, late September to early October.
All Eyes on Jackson Hole Meeting
Jerome Powell’s upcoming speech at Jackson Hole on Friday has become a key market focus. Traders are watching for clues on the Fed’s stance. However, many analysts expect Powell to remain cautious and avoid signaling any major policy shifts.
The biggest overhang for Bitcoin remains Federal Reserve policy. Markets had priced in aggressive rate cuts for months. However, those expectations have eased amid hot inflationary data.
Reflecting this shift, Polymarket odds of no Fed rate cut in September recently climbed from 12% to 26%. While most economists still anticipate a 25 bps rate cut during the next FOMC meeting on September 17.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
