BTC could extend decline as traders brace for Powell’s Jackson Hole speech

The cryptocurrency market had a bearish weekend despite last week’s rally.

Bitcoin rallied to an all-time high of  $124,474 on Thursday but failed to surge higher and has lost nearly 5% of its value since then.

The bearish performance on Friday extended into the weekend, and Bitcoin is now trading around $115k per coin.

Analysts are expecting further correction as traders brace for a crucial speech by the US Federal Reserve chair later this week.

Powell’s Jackson Hole speech takes centre stage

Bitcoin, the leading cryptocurrency by market cap, is down 2.5% in the last 24 hours and is now trading at $115,100.

The decline comes following last week’s rally that saw BTC set a new all-time high.

Analysts are now expecting further downward movement for BTC as altcoins also shed some gains.

However, traders are focusing their attention on Federal Reserve (Fed) Chairman Jerome Powell’s speech at the annual Jackson Hole Symposium, scheduled for Aug. 21-23.

According to the CME’s FedWatch tool, the apex bank is expected to cut rates by 25 basis points in September. 

Investment banking giant JPMorgan expects the benchmark borrowing cost to drop to 3.25%-3.5% by the end of the first quarter of 2026, signalling a 100-basis-point decrease from the current 4.25%.

Traders will be paying attention to Powell’s speech later this week as he could lay the groundwork for fresh easing during this event.

Failure to mention a possible rate cut could see BTC and other major cryptocurrencies record losses in the near term. 

Bitcoin could extend its decline as the bearish trend grows thicker

The BTC/USD 4-hour chart is bearish and efficient thanks to Bitcoin’s losses over the weekend.

The leading cryptocurrency reached a new all-time high of $124,474 on Thursday but failed to maintain its upward strength and declined 4% on the same day. 

It traded around $117k on Sunday, but sharply declined below $116k during the early hours of Monday.

BTC has now dropped below the key support at $116k and could test lower support regions if the bearish trend continues. 

The RSI of 41 shows that BTC is entering the oversold region, while the MACD lines within the negative zone indicate a bearish trend.

BTC is already retesting the 50-day Exponential Moving Average (EMA) at $115,031, and a successful close below this level could extend the losses toward its next support level at $111,980.

However, if the bulls regain control of the market and push BTC above $116k over the next few hours, it could extend the recovery toward its psychological level of $120,000.

The medium-term target remains $130k, and Bitcoin could rally towards it if the bulls embark on an explosive upward move.

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