Bitcoin hits lowest price since July amid whale selling and market uncertainty.
- Bitcoin fell nearly 4% after Wall Street opened on Friday.
- Large BTC holders triggered massive sell-offs on exchanges.
- Traders hope a bullish RSI signal may lead to a recovery.
Bitcoin Falls After Whale Sell-Offs
Bitcoin dropped to almost $108,000 on Friday, its lowest level since July 8. The sharp decline happened as whales—wallets with large amounts of BTC—sold off their holdings. This sell-off mainly occurred on Binance, the world’s largest crypto exchange. Analysts say this added pressure and pushed prices lower even faster.
According to CoinGlass, over $530 million in crypto positions were liquidated in just 24 hours. This means many traders were forced to sell their assets due to dropping values.
Traders Look at RSI for Signs of Reversal
Despite the price drop, some traders see signs of a possible comeback. A popular indicator called the Relative Strength Index (RSI) shows a bullish divergence. This means RSI is going up while price is going down. This pattern can sometimes signal that the price could rise again.
Crypto analyst Javon Marks believes Bitcoin could jump back up to $123,000 if the bullish divergence holds. That would be a gain of over 15% from current levels.
Inflation and Interest Rates Add Pressure
September is often a weak month for Bitcoin, and inflation in the U.S. is still creating worries. The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) Index, met expectations but did not calm markets. High inflation usually leads to higher interest rates, which can be bad for riskier assets like crypto.
However, traders still expect that the Fed might cut interest rates in September. Data from CME Group’s FedWatch Tool shows that many investors think a rate cut is likely—unless next week’s jobs data changes things. If the jobs report is stronger than expected, the Fed might decide to delay any cuts.
Key Support Levels and Market Sentiment
So far, Bitcoin has been unable to stay above $112,000, which some traders believe is a key support level. Others say that $114,000 is needed for a confident rally. Without those levels, investor anxiety may grow.
Overall, market watchers are cautious. Some think the current cycle is ending, while others hope for a rebound. For now, all eyes are on chart patterns and upcoming economic data.
Source: cointelegraph.com
