Bitcoin slipped to fresh multiweek lows on Friday as heavy selling pressure and macroeconomic concerns rattled investors. The world’s largest cryptocurrency briefly traded at $108,365, its lowest level since 8 July, with analysts warning of a potential slide toward the $100,000 mark.
Whales Trigger Fresh Downturn
Data from Binance and TradingView indicated a nearly 4% intraday fall as traders at the Wall Street open witnessed another wave of distribution from large holders. Market tracker CoinGlass reported almost $540 million in crypto liquidations within 24 hours, adding fuel to the bearish momentum.
Popular trader Daan Crypto Trades highlighted the importance of the current zone, noting that Bitcoin was testing a previous range and consolidation area. Similarly, trader Crypto Caesar pointed out that failure to reclaim $112,000 as support leaves the asset exposed to further declines.
Bulls Eye RSI Divergence for Relief
Despite the selling pressure, some traders remained hopeful thanks to technical indicators. Market commentator Javon Marks observed that Bitcoin’s four-hour chart still showed a bullish relative strength index (RSI) divergence, where RSI posts higher lows even as price records lower lows.
Fed target rate probabilities for September FOMC meeting. Source: CME Group
Marks argued this could pave the way for a sharp rebound, potentially lifting Bitcoin back toward $123,000, a 15% increase from current levels. However, other analysts stressed that such signals may take time to play out and are far from guaranteed.
Fed Policy and Inflation Keep Investors on Edge
Beyond technical factors, macroeconomic developments also weighed on sentiment. September has historically been Bitcoin’s weakest month, and the release of the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) Index, reinforced those concerns.
The data matched expectations but underlined a rebound in inflationary pressures. While futures markets still price in a rate cut from the Fed in September, analysts cautioned that the outlook remains fragile. Mosaic Asset warned that stronger-than-expected US payroll figures next week could put rate-cut expectations at risk, which may further pressure crypto markets.
Key Levels Ahead
For now, traders agree that Bitcoin must defend $108,000 to avoid a rapid test of the psychological $100,000 threshold. A weekly close above $114,000 is seen as critical for the bulls to regain momentum. Until then, sentiment remains cautious, with traders watching both whale activity and incoming US economic data for signs of direction.
