Bitcoin Retreats Ahead of Powell's Jackson Hole Statement

Bitcoin retreated slightly on Thursday as investors started to book profits following its recent rally. The BTC/USD pair dropped to 78,450 from its month-to-date high of 81,233. This retreat occurred after the US released strong inflation numbers, with the headline Personal Consumption Expenditure (PCE) rising 3.7% in July.

The upcoming statement from Jerome Powell, the Federal Reserve Chair, at the Jackson Hole Symposium will be crucial for Bitcoin's price movement. If the bank hikes interest rates later this year, it would be bearish for the coin. On the positive side, Bitcoin ETF inflows have added over $3 billion in assets this month.

According to technical analysis, the BTC/USD pair has formed a shooting star candlestick pattern, which typically leads to more downside. The Relative Strength Index (RSI) has moved from an overbought level of 82 to 78.9, indicating a profit-taking zone. Therefore, the most likely scenario is a retreat in the near term, potentially to the key support level of 70,000.