Key takeaways
- Bitcoin fell about 1% in the past 24 hours and slipped below the $112,000 level.
- The leading cryptocurrency is still holding above the $110,000 support as markets wait for tomorrow’s PCE inflation data.
BTC slips below $112k as bearish sentiment grows
The crypto market turned more bearish this week, with Bitcoin and several major coins underperforming. Bitcoin briefly reclaimed the $114,000 mark on Wednesday but has since given back gains and is trading below $112,000 again.
This weakness comes as Fed officials have tempered expectations for further rate cuts before year-end. Chair Jerome Powell warned of caution around future cuts, even after a 25-basis-point reduction earlier this month.
Traders are also cautious ahead of tomorrow’s Personal Consumption Expenditures (PCE) report. The PCE is the Fed’s preferred inflation gauge and could influence whether the central bank opts to cut rates at its next FOMC meeting in October.
BTC could drop below $110k if the downtrend continues
On the BTC/USD four-hour chart, the medium-term outlook still shows some underlying strength despite a roughly 4% decline over the past seven days. However, short-term technical indicators are tilting bearish amid continued selling pressure.
The Relative Strength Index (RSI) at around 38 suggests Bitcoin is approaching oversold territory if the sell-off persists. Meanwhile, the MACD lines crossed into negative territory over the weekend, signaling growing bearish momentum.
Bitcoin is currently trading near $111,793. If selling pressure continues, BTC could break the $110,000 support and test the $107,000 area, a level not seen since August 31.
If $110,000 holds and Bitcoin rebounds, the first major resistance to watch is $114,000, which could be reclaimed in the coming hours or days. In the event of a stronger bullish recovery, BTC could attempt to reach the $118,000 resistance for a second time this month.