Bitcoin (BTC), which is the digital currency, declined in Friday’s Wall Street opening as traders began to expect a BTC breakdown.
Important points
- Bitcoin is steadily falling below the $63,000 mark, and moving towards new August lows. Meanwhile, US stocks are soaring to record levels.
- The analysis says that to prevent a worsening of the crisis, it is necessary to recover $63,220 by the end of each week.
- Risk assets are viewed as being tested by the PCE data.
Bitcoin prices fall as stocks reach all-time highs
TradingView data showed that BTC/USD was down by 1.3% for the day, at $62,570. This is near to its lowest level month-to date.
BTC/USD four-hour chart. Source: Cointelegraph/TradingView
Although encouraging US inflation data Bitcoin, despite its ability to reduce the likelihood of rate hikes and increase risk assets, failed to keep up with US stocks, which ended Thursday’s trading session on all-time records. The S&P 500 and tech-heavy Nasdaq Composite Index were both green at the time of writing, up 0.11% and 0.14%, respectively.
BTC/USD vs. S&P 500 one-hour chart. Source: Cointelegraph/TradingView
Rekt Capital, a trader and analyst who commented on Bitcoin’s price performance warned that the weekly closing Bitcoin value should be at least $63,220 by Sunday.
“A Weekly Close below the orange level would probably set price up for a breakdown,” He wrote in a blog post at X.
According to the analyst, $63,000 is no longer being used as support. weakening throughout AugustHaving previously noted the 50-month moving average exponential (EMA) of $65,827 as resistance. copying the 2022 bear market.
BTC/USD one-week chart. Source: Rekt Capital on X.com
Cointelegraph previously reported As Bitcoin approaches its annulation date, there are more chances for a Bitcoin liquidation to last a while. area of liquidity around $61,000 amid growing open interest (OI) in derivatives markets.
“Traders have added substantial risk, most of it long, into a market that shows no matching demand,” Glassnode’s regular newsletter summarizes its latest onchain analysis platform. The Week Onchain.
PCE is the focus of attention after Bitcoin fails to address inflation relief
Its latest analysis, trading and investment company QCP Capital drew attention to crypto markets’ refusal to rally on improving US inflation conditions — a phenomenon it described as “increasingly important.”
Related: Bitcoin speculators keep BTC price ‘pinned’ below $68.7K: Glassnode
“Last week, BTC demonstrated resilience in absorbing several negative headlines without a sustained breakdown,” I wrote:
“This week has reinforced the distinction between resilience and momentum: the range remains intact, but softer inflation data have so far generated only a muted response from crypto.”
QCP said that traders will be focusing on the August 26 release of the Personal Consumption Spending (PCE) Index, which is the Federal Reserve’s preferred inflation indicator. This index was the last to print since July. first monthly decline since 2020According to data provided by the Bureau of Economic Analysis.
US PCE percentage change data (screenshot). Source: BEA
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Source: cointelegraph.com
