Bitcoin and Gold fall as focus shifts to Jackson Hole Symposium

Bitcoin (BTC) and Gold (XAU/USD) are broadly retreating on Friday as investors reevaluate their positions after recent price gains. Bitcoin approached $81,500 earlier in the day but faced rejection, fueling the ongoing correction. Meanwhile, XAU/USD hovers below $4,600, following a 3% decline from the pair’s August peak of $4,697.

Fed Chair Kevin Warsh raises inflation concerns

Federal Reserve (Fed) Chair Kevin Warsh, in his speech at the Jackson Hole Economic Policy Symposium in Wyoming on Friday, raised concerns about elevated inflation in the United States (US). Warsh cautioned that if price pressure does not ease, the situation would warrant stricter monetary policy, including raising interest rates.

“While this summer’s [inflation] readings were better than expected, they do not tell me that underlying trends have meaningfully improved,” Warsh said, adding “we must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That’s our job, our mandate and our charge to keep.”

As anticipated, the Fed chair avoided committing to forward guidance or offering clues about the central bank’s intentions. However, he expressed confidence in the economy, saying that it “appears to have strengthened.”

Technical analysis: Bitcoin’s upside capped as downside risks linger

Bitcoin edges lower below $80,000 following a second rejection from the $81,000-$82,000 supply range in less than two weeks. Still, the Crypto King remains in a bullish phase above key Exponential Moving Averages (EMAs), reinforcing a constructive medium-term trend.

Momentum stays affirmative, with the Moving Average Convergence Divergence (MACD) indicator still in positive territory even as its latest reading hints at some loss of upside strength. At the same time, the Relative Strength Index (RSI) hovers in overbought territory around 78, suggesting the advance could be prone to bouts of consolidation or corrective pullbacks.

On the downside, initial dynamic support emerges at the 200-day EMA around $72,069, where a deeper correction would be expected to attract dip-buying interest in line with the prevailing uptrend. Below that, the 50-day EMA at approximately $68,694 and the nearby 100-day EMA around $68,360 form a secondary demand zone that should act as a more substantial medium-term floor while the broader bullish structure remains intact.

Gold technical outlook: XAU risks extending trend reversal

XRP trades around $4,580, extending its advance well above the main moving averages, which maintains a bullish near-term bias. Momentum remains constructive, with the RSI easing from overbought territory but still holding in the mid-60s, while the MACD stays positive, suggesting bullish pressure is moderating rather than reversing.

Initial support lies at the recent pivot zone around $4,580, reinforced by the 100-day EMA at $4,364, followed by the 50-day EMA at $4,336 and the 200-day EMA at $4,315, where buyers could look to defend the broader uptrend.

A deeper pullback toward the descending trendline break region near $4,267 would still keep the medium-term structure constructive, with only a sustained move below that area suggesting that Gold’s bullish phase is at risk of a more significant correction.

(The technical analysis of this story was written with the help of an AI tool.Know more.)

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts.

He enjoys deep dives into emerging Web3 tren

Source: www.fxstreet.com