Bitcoin price prediction: BTC struggles to stabilise despite Fed dovish signal

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Bitcoin price prediction

Highlights

-Bitcoin pressured near $110,850 EMA as recovery momentum quickly fades.

-Fear and greed index at 47 highlights ongoing trader indecision.

-Weak volume on Tuesday’s rebound signals limited conviction behind upside.

Tuesday’s close at $111,800 brought Bitcoin back above the 100-day exponential moving average, temporarily ending the post-symposium selloff. However, the follow-through has been weak. On Wednesday, price action during the Asian session reversed the previous day’s gains, and by the European hours, Bitcoin had lost 0.7%, trading at $110,950. The slide once again positioned the 100-day exponential moving average near $110,850 as a critical test of near-term support.

Bitcoin price dynamic (July - August 2025). Source: Tradingview

The broader context shows Bitcoin down 2.37% on the week, which reinforces the technical importance of how price interacts at this threshold. A decisive break lower could expose the previous day’s trough at $108,700 and potentially extend the retracement from the recent all-time high. Conversely, holding above the average may support another attempt at recovery, though the week’s opening level at $113,500 is expected to cap any immediate upside and prevent a shift into weekly gains.

Bitcoin volume weakness highlights lack of conviction behind recent rebound

Volume patterns lend weight to the bearish argument. The rebound that lifted Bitcoin on Tuesday was accompanied by declining activity on the four-hour chart, highlighting a lack of conviction behind the move. This aligns with the overall sentiment backdrop, where the fear and greed index sits at 47, indicating neutrality and indecision among market participants.

From a technical-fundamental lens, the dovish tone from policymakers should have acted as a tailwind, but Bitcoin’s inability to attract buyers shows that momentum in the short term is still skewed to the downside. The neutral sentiment reading and weak trading activity suggest that the market is waiting for a clearer catalyst to define direction. Until that arrives, the bearish pressure on the 100-day exponential moving average remains the focal point.

Bitcoin’s recovery attempt after Jackson Hole has lost traction. The coming sessions will be defined by the defence or loss of the $110,850 support, which will determine whether Tuesday’s bounce was the start of a reversal or merely a pause before another leg lower.

Bitcoin tested $110,850 support after ETF outflows kept downside risks alive. BTC faded below $113,500 weekly open as weak sentiment pressured recovery.

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