Key Points:

• Bitcoin has reached a critical weekly price point to watch closely: $114,000.

• There’s a notable risk in the BTC market structure, suggesting it might be “weak” as liquidity is positioned under recent declines.

• Even with a trade agreement between the US and EU, expectations for a Federal Reserve rate cut in September are decreasing.

Bitcoin has experienced some volatility, especially at the Wall Street Open on Thursday, following the exhaustion of the recent US-EU trade contract. This led to a heightened focus on a price of $114,000.

According to data from Cointelegraph Markets Pro and TradingView, the $114,000 mark remains a significant short-term resistance level, even amidst macroeconomic news that didn’t hint at any trend shifts. Traders are observing this closely, as popular analyst Rect Capital noted on social media that Bitcoin is facing rejection around this price point.

Just the day before, Rekt Capital highlighted the importance of maintaining the $114,000 level, emphasizing that a clear drop below this point could indicate further declines. The end of the week could further illuminate Bitcoin’s future trajectory.

#BTC

This is a price action to look at in the short term.

Bitcoin must continue to reject from $114,000.

After all, for BTC to drop, you need to lose $114K.

Weekly closures are crucial compared to this $114K level.

Trader Daan Crypto Trades mentioned there’s an “interesting” price band to consider, with local lows around $109,850 to $111,900. He suggests that moving lower than this range might indicate a weaker market structure and indicated he prefers not returning to a lengthy consolidation period after recent movements.

Further analysis of Coinglass exchange order books showed a low point for bids coinciding with a liquidity band beginning at $112,900. This suggests that the market is watching closely.

Uncertainty Reigns Before Jackson Hole

Amid all this, trade contracts have had little impact on the US stock market, with both the S&P 500 and NASDAQ staying within a narrow range post-opening. As the Federal Reserve heads toward its Jackson Hole Economic Symposium, expectations for interest rate cuts were somewhat negatively affected, with projected odds increasing to 36% for no cuts—an uptick noted in trading analyses.

The CME Group’s FedWatch tool presented a slightly more optimistic view, showing a 25% chance for a current rate reduction, which has left many traders contemplating upcoming shifts. Minutes from the previous Federal Reserve meeting have indicated a growing consensus on inflation risks, which appear to take precedence over concerns about employment.

As Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole approaches, there’s considerable anticipation. Historically, his addresses have included key signals regarding monetary policy changes, and if inflation concerns dominate discussions, there may be hesitance to implement rate cuts until more data comes in.

This article does not provide investment advice or recommendations. Readers should conduct their own research and consider the risks involved in trading and investment decisions.