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Bitcoin Risks $108,000 in A Month-End Selling Off

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Bitcoin Latest Rally Backed By Stronger Purchasing Power: Report
Bitcoin Latest Rally Backed By Stronger Purchasing Power: Report

The following are key points.

  • Bitcoin’s price is now approaching $108,000 after a second round of trading at Wall Street.

  • Whales are responsible for the multi-week lows.

  • The US inflation figures do not offer bulls any relief despite the high probability of a rate cut.

BitcoinBTCAfter Friday’s Wall Street opening, the consensus was for a decline towards $100,000.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Bulls of Bitcoin pin their hopes on RSI Divergence

Data from Cointelegraph Markets Pro You can also find out more about the following: TradingView BTC/USD has dropped to its lowest level since July 8 after daily losses of almost 4%. 

Binance’s largest exchange had seen a distribution of whales earlier in the day. compounding the downside.

CoinGlass As of the writing, 24-hour crypto-liquidations were valued at $540,000,000.

Screenshot of Cryptoliquidations Source: CoinGlass

Market observers identified price in a key reversal zone.

“Good area to keep watching. Right on top of the previous range & consolidation area,” Daan Crypto Trades, a popular trader noted in A post on X.

BTC/USDT chart for the perpetual contract. Source: Daan Crypto Trades/X

Crypto Caesar, a fellow trader, had similar levels in his radar. Bitcoin failed to recover $112,000 of support.

Earlier, Cointelegraph reported Bulls must have a threshold of $114,000 to close their trades each week.

Only the low-timeframe Relative Strength Index (RSIThe light was at the end.

You can also read about the advantages of using noted According to popular crypto-commentator JavonMarks, the chart of four hours continued to show a bullish RSI Divergence. This is when RSI has higher lows than the price and it can indicate an upswing in price.

“$BTC (Bitcoin), still coming off of a confirmed Bullish Divergence can still have a huge reversal back up to $123,000 in the works,” Marks argued.

“This means that despite the current action, we could see a nearly +15% move back near the All Time Highs…”

Bitcoin Price, Markets, Market Analysis
BTC/USD 4-hour chart with RSI. Source: Cointelegraph/TradingView

Fed watches nervous after PCE figures

Seasonality and macroeconomics factors both played a part in the weakening of price movement.

Related: BTC bull run over at $111K? 5 things to know in Bitcoin this week

The month of September has a long tradition. Bitcoin’s weakest monthMarkets are wary about US inflation rates. 

BTC/USD Monthly Returns (screenshot). Source: CoinGlass

Federal Reserve Bank of New York “preferred” Personal Consumption Expenditures Index (PCE Index), the inflation gauge, met the expectations of the day and added to the inflation recovery.

CME Group’s data is compelling. FedWatch Tool confirms, markets still saw the Fed cutting interest rates in September — a key tailwind for crypto and risk assets.

Fed Target Rate Probabilities for the September FOMC Meeting Source: CME Group

Trading firm Mosaic Asset warned in response that data into the decision of Sept. 17, could change the landscape.

“Outlook for rate cuts could be in jeopardy if next week’s payrolls are stronger than expected,” You can also find out more about us here. told X Followers

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.