Bitcoin slipped to its lowest point since early July on Friday, extending losses as heavy selling and over half a billion dollars in liquidations pressured the market. Despite a bullish relative strength index (RSI) divergence suggesting a possible rebound, sentiment remained cautious, with traders watching key support and resistance zones closely.
Bitcoin Tumbles Below Key Levels
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin (BTC) falling nearly 4% on the day, touching lows not seen since 8 July. The decline came after US markets opened, underscoring continued fragility in crypto trading.

Crypto liquidations (screenshot). Source: CoinGlass
Much of the pressure stemmed from whale distribution on Binance, the world’s largest crypto exchange, where large holders offloaded Bitcoin, exacerbating the downside. CoinGlass reported that crypto liquidations exceeded $530 million within 24 hours, highlighting the scale of forced selling.

BTC/USDT perpetual contract one-day chart. Source: Daan Crypto Trades/X
Market watchers flagged the current price zone as a critical reversal area. Trader Daan Crypto Trades described it as “right on top of the previous range and consolidation area,” while analyst Crypto Caesar noted Bitcoin’s repeated failure to reclaim $112,000 as support.
Weekly Close and Reversal Hopes
Attention now turns to whether Bitcoin can secure a weekly close above $114,000, a level many traders consider essential to sustain bullish momentum. Without this, some warn that BTC risks sliding toward $108,000 or even lower.
A glimmer of optimism came from the four-hour RSI chart, which has preserved a bullish divergence. RSI making higher lows while price registers lower lows often signals a potential reversal.

BTC/USD four-hour chart with RSI data. Source: Cointelegraph/TradingView
Crypto commentator Javon Marks pointed out that the divergence could pave the way for a strong recovery.
“$BTC, still coming off of a confirmed bullish divergence, can still have a huge reversal back up to $123,000,” Marks wrote, suggesting a possible 15% rally back toward the all-time highs.
However, for now, those bullish signals remain muted as traders weigh macroeconomic factors and seasonal trends.
September Headwinds and Fed Uncertainty
Seasonality has also dampened sentiment. Historically, September has been Bitcoin’s weakest month, and 2024 appears to be no exception. The timing coincides with heightened focus on US economic data, particularly inflation indicators.

BTC/USD monthly returns (screenshot). Source: CoinGlass
On Friday, the Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation gauge, met expectations. While the data confirmed a rebound in inflationary pressures, it did little to ease investor nerves.
Markets still expect the Fed to cut interest rates in September, according to the CME Group’s FedWatch Tool. Lower borrowing costs typically provide a tailwind for risk assets, including Bitcoin. Yet, analysts warn that the outlook could shift rapidly.

Fed target rate probabilities for September FOMC meeting. Source: CME Group
Trading firm Mosaic Asset cautioned that next week’s US jobs data could be decisive:
“Outlook for rate cuts could be in jeopardy if next week’s payrolls are stronger than expected,” it noted.
This uncertainty leaves crypto markets delicately balanced, with traders torn between short-term technical setups and broader macroeconomic risks.
What Lies Ahead for Bitcoin?
With BTC hovering near its weakest levels in nearly two months, all eyes are now on whether bulls can defend key support around $108,000–$112,000. Losing these levels could accelerate bearish momentum, while holding them may set the stage for another push higher.
The interplay between whale activity, liquidations, and Federal Reserve policy decisions will likely dictate Bitcoin’s near-term direction. While RSI divergence offers a hint of optimism, history shows that September rarely provides much comfort for Bitcoin traders.