Key Takeaways
- The price of Bitcoin has dropped 1% over the last 24 hours, falling below the $112,000 mark.
- Despite this drop, the leading cryptocurrency is still holding above the $110,000 support level ahead of tomorrow’s PCE data release.
Bitcoin Falls Below $112,000 as Bearish Sentiment Grows
The cryptocurrency market has turned bearish this week, with Bitcoin and other major cryptocurrencies underperforming. The price of Bitcoin regained the $114,000 level on Wednesday, but quickly surrendered those gains, trading once again below the $112,000 threshold.
This negative performance comes as Federal Reserve officials temper expectations for further rate cuts before the end of the year. Chairman Jerome Powell has indicated a cautious approach regarding future cuts, despite the Fed’s recent 25 basis point reduction earlier this month.
Traders are treading carefully ahead of the release of tomorrow’s PCE data, the Fed’s primary inflation indicator. This information could play a crucial role in the central bank’s decision on whether to reduce interest rates during its next FOMC meeting in October.
Bitcoin Could Drop Below $110,000 if Downward Trend Persists
The BTC/USD chart on a four-hour timeframe remains bullish and effective, despite a 4% loss in Bitcoin’s value over the past week. However, technical indicators are currently bearish due to ongoing selling pressure.
A RSI of 38 indicates that Bitcoin is nearing oversold territory if selling continues. Additionally, MACD lines have crossed into negative territory over the weekend, signaling a bearish momentum.
Currently, Bitcoin is trading at $111,793. If the downward trend persists, it could drop below the support level of $110,000 and retest the $107,000 region for the first time since August 31.
However, if the $110,000 support level holds and Bitcoin rebounds, it may recover the first major resistance level at $114,000 in the coming hours or days. A sustained bullish rally could push BTC back to the $118,000 resistance for a second time this month.
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