Mihai Jacob, a well-known market watcher, says the Bitcoin price rally that followed Powell’s Friday speech may not be as strong as it first looked. The charts, he explains, continue to flash signs of weakness that should not be ignored. According to Jacob, the flagship cryptocurrency could still face another sharp decline, and a drop below $100,000 remains a real risk despite the short-term optimism.
Powell’s Speech Gave Bitcoin Price A Lift, But Charts Tell A Different Story
Jacob explains that in his earlier analysis, he noted the $110,000 zone as a key level for Bitcoin. As long as that level held, the broader bullish structure could technically stay intact. Powell’s speech gave a hint of a possible rate cut, and for a moment, the market reacted with excitement, and Bitcoin bounced just as traders wanted.
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But Jacob quickly asks the hard question: was that bounce real strength, or just wishful thinking? He advises trading what you see, not what you hope for. And what he sees now on the charts does not match the initial joy of the rally. Soon after the move, Bitcoin returned to the $ 112,000 support level, erasing most of the gains. For Jacob, this suggests that the market may have been reacting to temporary news rather than initiating a new wave of growth.
He warns that the bounce looks more like a retest of broken levels than a fresh start to a bigger move. In other words, what seemed like a comeback may actually be a signal that Bitcoin remains weak. Instead of buyers taking control, the chart suggests sellers are still in charge, waiting to push the price lower again.
Why A Drop Below $100,000 Remains Likely
Looking at the bigger picture, Jacob points out that Bitcoin still trades below the trendline that has been in place since April, highlighting the shape of the price action, which suggests a possible head-and-shoulders pattern is forming around the $110,000 zone. While not perfectly shaped, it is still enough to make cautious traders uneasy about what may come next.
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For Jacob, the excitement that came from Powell’s speech was likely nothing more than “rate cut euphoria,” and he believes the market is sending a very different message from what headlines suggest. The idea that Bitcoin would simply return to the same support level, giving late buyers another easy opportunity, is, in his view, hard to believe. More likely, it was a “dead cat bounce,” a short-lived move before another fall.
Jacob makes it clear that his current stance is neutral in terms of active positions, but his outlook leans bearish. Optimism may be tempting, but he insists that discipline requires traders to trust the charts, not their hopes. With Bitcoin still struggling under key levels, he sees the possibility of a decline below $100,000 as very real.
Featured image from DALL.E, chart from TradingView.com
