Bitcoin: The world of cryptocurrency has once again reminded traders of its unpredictable nature. Bitcoin, the largest and most influential digital asset, dipped to its lowest level since early July, sparking fear and hope in equal measure. As traders watched the charts on Friday, Bitcoin slipped nearly 4%, hitting $108,556. The fall was mainly fueled by heavy whale selling on Binance, creating a storm of liquidations that rattled the market.
$530 Million Liquidated in Just 24 Hours
The sudden drop wasn’t just about price it was about scale. Data from CoinGlass revealed that over $530 million in crypto long positions were liquidated within a single day. Such large-scale liquidations are often a sign of market stress, where traders betting on higher prices are forced to sell at a loss. This kind of shakeout amplifies volatility, making it even harder for bulls to regain control.
One well-known trader, Daan Crypto Trades, highlighted $108,000 as a critical zone. He noted that this level sits right above Bitcoin’s previous consolidation area, making it a possible turning point for either recovery or further decline.
Is a Rebound on the Horizon?
While the sell-off has left many investors nervous, some analysts see hope in the charts. Market observers have pointed out a bullish divergence on Bitcoin’s relative strength index (RSI), which often hints at a possible trend reversal.
“Bitcoin still shows signs of a bullish divergence and could make a move back up toward $123,000,” market commentator Javon Marks explained. Such a rally would represent nearly a 15% recovery, but it would require bulls to reclaim the $112,000–$114,000 zone to prove strength. Without that, downside risks remain firmly in play.
The Macro Pressure Fed Rate Cuts and Inflation
Beyond technicals, global economic conditions are adding weight to Bitcoin’s path. Historically, September has been one of Bitcoin’s weakest months, and this year seems no different.
Fresh U.S. inflation data through the Personal Consumption Expenditures (PCE) Index met expectations, but it also signaled a possible rebound in price pressures. The Federal Reserve is still expected to cut rates in September, according to the CME FedWatch Tool, but uncertainty looms.
Trading firm Mosaic Asset warned that stronger-than-expected U.S. payroll data next week could challenge those rate-cut expectations. If the Fed delays or softens its approach, Bitcoin and other risk assets could face additional headwinds.
What’s Next for Bitcoin
At this stage, the key battleground lies at $108,000. If bulls can defend this support, the RSI signals suggest a short-term bounce is possible, potentially pushing Bitcoin toward $123,000. However, if selling pressure continues and Bitcoin breaks below this crucial level, the next stop could be closer to $100,000 an outcome that would test investor patience to its core.
For now, traders are caught between fear of deeper losses and hope for a technical rebound. Bitcoin’s next move will likely be shaped not only by whale activity but also by the Federal Reserve’s upcoming decisions and broader economic signals.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Cryptocurrency markets are highly volatile, and prices can change dramatically in short periods. Always do your own research or consult a financial advisor before making investment decisions.
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