Bitcoin had one of its most volatile weeks in recent months, marked by sharp swings that kept both bulls and bears on edge. The leading cryptocurrency surged to a new all-time high near $124,000, only to tumble below the $115,000 level within days. This swift reversal highlighted the fragility of momentum in overheated conditions but also underscored the market’s ability to rebound when macroeconomic catalysts emerge.
The turning point came during Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, where a key statement triggered an immediate market reaction. Powell hinted at a potential shift in policy stance, suggesting that restrictive conditions could soon be adjusted. Within minutes, risk assets, including Bitcoin, surged as liquidity poured back into markets, sparking renewed optimism across the crypto space.
Following the speech, Bitcoin regained strength, climbing back above the $115K support zone. This recovery has reignited bullish sentiment, with traders eyeing the next resistance levels that could decide the short-term trajectory. The broader crypto market followed suit, with altcoins showing renewed momentum as investors reallocated capital.
Bitcoin Futures React To Powell’s Jackson Hole Speech
According to top analyst Darkfost, Federal Reserve Chair Jerome Powell’s speech at Jackson Hole acted as a powerful catalyst for Bitcoin futures markets. In his remarks, Powell stated that “with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” This subtle yet impactful statement hinted at a potential easing of the Fed’s monetary policy, immediately sparking a surge of optimism across global markets.
The reaction in crypto was swift and decisive. Within just 15 minutes of Powell’s speech, over $300 million in fresh liquidity flooded into Binance’s Bitcoin futures market. This sudden inflow pushed Binance BTC Open Interest to approximately $13.3 billion, underscoring how sensitive the crypto derivatives market remains to macroeconomic cues.
Darkfost noted that this surge highlights the market-moving power of central bank communications, especially in an environment where liquidity conditions play a defining role in speculative demand. Bitcoin’s sharp reaction mirrored broader risk-on sentiment, as traders positioned themselves for the possibility of looser monetary conditions that would favor higher-yielding and alternative assets like BTC.
The event also reaffirmed the volatility of Bitcoin futures, where shifts in Open Interest can rapidly amplify price moves. In this case, the spike in demand aligned with BTC reclaiming key support zones, reinforcing bullish sentiment across the market.
BTC Testing Critical Resistance
The 4-hour chart for Bitcoin shows strong volatility following Powell’s Jackson Hole remarks, with BTC rebounding sharply from lows near $112K to $116.5K. This sudden spike highlights how macroeconomic catalysts can trigger liquidity inflows within minutes. The bounce aligns with the reclaim of the 200-period SMA (red line), which now sits just under current price and acts as critical short-term support.
Despite the rally, BTC remains below its recent $123,217 resistance, a level that has capped price twice this cycle. The mid-term structure still suggests consolidation, with the 50-SMA (blue) and 100-SMA (green) converging around $116K–$117K, creating a decision zone for bulls and bears. Sustaining above this area could open the path for another retest of the highs, while failure to hold risks a deeper pullback toward the $112K region.
Momentum indicators suggest buyers are attempting to regain control, but price action is not yet showing a clean breakout. For bulls, defending $115K–$116K is key to maintaining the bullish structure. Bears, however, will look for rejection below the SMAs to reinforce downside pressure.
Featured image from Dall-E, chart from TradingView
