TLDR
- Bitcoin price recovered from $112,350 low to $114,500 as Fear & Greed Index shifted from 44 back to neutral at 50
- Institutional whales purchased $23 million worth of Bitcoin during the correction, showing confidence in long-term prospects
- Four technical reversal signals are flashing including positive bid-ask ratios and retail sentiment metrics above 60%
- Jerome Powell’s Jackson Hole speech on Friday could drive Bitcoin volatility with 82% odds of September rate cuts
- Crypto market capitalization bounced back to $3.96 trillion following 2% gains across digital assets
Bitcoin price analysis shows the world’s largest cryptocurrency staged a recovery after dropping to $112,350 earlier this week. The digital asset has bounced back to $114,500, representing a swift turnaround from fear-driven selling.
The Bitcoin Fear & Greed Index dropped to 44 during the correction. This marked the lowest reading in two months as market sentiment turned bearish.
Bitcoin’s decline represented a 10% correction from its August peak above $124,000. However, the cryptocurrency quickly found support and began climbing higher.
Market sentiment has now returned to neutral territory with the Fear & Greed Index at 50. This shift occurred within 24 hours of the initial selloff.
Bitcoin Whales Buy the Dip
On-chain data reveals institutional buyers stepped in during the correction. Whale trackers identified a major purchase of 200 Bitcoin tokens worth approximately $23 million.
This buying activity suggests sophisticated investors view the dip as a buying opportunity. Large holders continue to accumulate Bitcoin despite short-term price volatility.
Glassnode analytics show First Buyer supply approaching 5 million Bitcoin. This metric indicates long-term investors are dollar-cost averaging into the market decline.
Bitcoin pioneer Adam Back commented that market dips transfer coins from weak hands to stronger holders. This pattern reflects institutional adoption trends.
Technical analysis from Captain Faibik shows Bitcoin broke below a rising wedge pattern. The cryptocurrency is currently trading beneath the 50 exponential moving average.
Key support levels include the 111-day simple moving average at $109,600. The 200-day SMA sits at $100,400 while Short-Term Holder Realized Price is $106,800.
Bitcoin Price Prediction
Markets are awaiting Federal Reserve Chair Jerome Powell’s Jackson Hole speech on Friday. This annual conference has historically moved both equity and cryptocurrency markets.
The CME Fed Watch tool currently shows 82% probability of a rate cut in September. However, this percentage has been declining in recent days.
Treasury Secretary Scott Bessent initially disappointed Bitcoin holders by stating the government wouldn’t purchase more BTC. He later appeared to soften his stance in social media posts.
Four technical conditions suggest Bitcoin price reversal may be forming. The bid-ask ratio has turned positive, which historically marks local bottoms.
True Retail Accounts Long percentage stands at 61.95%. Readings above 60% have previously indicated bullish pivot points in Bitcoin’s price action.
Total cryptocurrency market capitalization recovered to $3.96 trillion following gains across digital assets. However, Powell’s speech could trigger fresh volatility depending on his tone regarding monetary policy.
