Bitcoin Pulls Back Amid Hawkish Fed Comments, Wedge Formation

Bitcoin's recent price action was influenced by comments from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium on August 28. He delivered a more hawkish assessment of inflation than he did after the July meeting, reaffirming the Fed's 2% target for core PCE inflation and emphasizing that tackling price pressures is the central priority for policymakers.

This led to increased expectations of a rate hike at the September meeting, with the market pricing in a higher probability of such a scenario. As a result, Bitcoin pulled back, giving up some of its August gains.

From an technical analysis perspective, the four-hour BTC/USD chart shows a pronounced uptrend since 14 August, with the price increasing from around $63,000 to a peak near $81,500 on current red resistance. However, this upward momentum was interrupted by an ascending wedge formation near the top of the advance.

On August 28, Bitcoin broke below its lower boundary within the wedge on elevated volume. While the decline has yet to become sustained, the RSI + MAs indicator is currently neutral, offering no clear advantage to either buyers or sellers.