Bitcoin’s price has recently fallen to its lowest levels since July 8, coinciding with liquidations surpassing $530 million in the crypto market.
A fresh wave of selling began with the opening of Wall Street, pushing Bitcoin’s value closer to the critical support level near $108,000.
Significant sell-offs by major holders, or whales, have triggered multiweek lows as large amounts of Bitcoin were offloaded on major exchanges like Binance.
Data from CoinGlass highlights that 24-hour crypto liquidations reached nearly $540 million, underscoring the intense market pressure.
Despite a bullish divergence signal seen in the Relative Strength Index (RSI), which typically suggests a potential price reversal, Bitcoin’s price action continues to slide, indicating strong bearish momentum.
Key market analysts and traders highlight crucial price zones where Bitcoin might find support, with some monitoring whether BTC can maintain above $112,000 to avoid further decline.
Market uncertainty is further amplified by macroeconomic factors, including recent US inflation data. Although high expectations remain for an interest rate cut by the Federal Reserve, the inflation figures dampened bullish sentiment temporarily.
September is historically one of the weakest months for Bitcoin, adding seasonal pressure to the already volatile market environment.
The Federal Reserve’s preferred inflation indicator, the Personal Consumption Expenditures (PCE) index, matched expectations but suggested an inflation rebound, contributing to cautious investor behavior.
However, the CME Group’s FedWatch Tool signals that markets generally anticipate a rate reduction in the upcoming Federal Open Market Committee meeting, which could provide positive momentum for crypto assets.
Trading firms warn that upcoming economic data, such as payroll reports, might affect the rate cut prospects and thus influence Bitcoin’s price trajectory.
Investors and traders are advised to stay vigilant and conduct thorough research before making decisions, as crypto investments carry significant risk due to market volatility.
