Bitcoin Slips Back Below Post-Powell Highs, Bearish Structure Persists as Ether Flashes Weakness at Peak

Bitcoin retraced its Powell-driven gains, signaling fragility in upside momentum as bearish technicals reassert dominance.

Bitcoin (BTC) has fallen back to levels last seen before Federal Reserve Chair Jerome Powell’s dovish speech last Friday, which had temporarily boosted risk sentiment amid growing hopes of a September rate cut.

At the time of writing, BTC is hovering just above $112,000—well off the local high near $117,440 hit on Friday. The failure to hold onto those gains reflects broader market caution and underscores a prevailing bearish bias.

Technical Picture: Lower Highs and Momentum Breakdown

Price action on the daily chart confirms a rejection just below the descending resistance line drawn from the April rally’s trendline. This rejection has now carved out a lower high, reinforcing the breakdown of the former uptrend and validating the continuation of a bearish trajectory.

The Guppy Multiple Moving Average (GMMA) is on the verge of flashing a bearish crossover, with the short-term EMA band (white) poised to dip below the longer-term averages (red)—a structure historically linked to deepening downtrends.

On the weekly timeframe, the MACD histogram has started the week in negative territory, reflecting a growing risk of accelerating downside momentum.

Bottom line: When bullish macro news fails to trigger sustained rallies—and instead results in renewed weakness—it may speak volumes about the underlying market health.

Key Levels to Watch

• Support: $110,756 (Ichimoku cloud base), $100,887, and $100,000 (200-day SMA)
• Resistance: $117,440 (Friday’s high), $120,000, and $122,056

Ether Weakens at the Top, Doji Warns of Momentum Loss

Ethereum (ETH) showed signs of fatigue after hitting fresh all-time highs, printing a classic doji candlestick on Sunday. This pattern, marked by nearly equal opening and closing prices, reflects a balance of power between bulls and bears—and often signals exhaustion or a potential reversal.

The long upper shadow on the candle hints that buyers attempted a breakout but were firmly rejected, with sellers dragging the price back down before the session closed.

Although a doji is not inherently bearish, it does emphasize indecision and often precedes either a pullback or sideways consolidation, particularly when supported by additional signals.

Bearish Divergence Confirms Waning Strength

The 14-day Relative Strength Index (RSI) has continued to post lower highs despite ETH printing new price peaks, signaling bearish divergence—a classic indicator of slowing bullish momentum and a setup that often precedes corrections.

ETH was last seen trading 3% lower on the day at $4,624, with key short-term support near $4,065—the level that launched the recent rally on August 20.

ETH Key Levels

• Support: $4,065, $4,000, $3,805 (50-day SMA)
• Resistance: $5,000, record highs

Conclusion
Bitcoin’s inability to sustain gains despite dovish macro tailwinds—and Ether’s hesitation at record levels—both suggest a market in search of stronger conviction. Until key resistance levels are reclaimed, price action remains vulnerable to further downside.