Bitcoin falls further toward new August lows, ignoring positive US inflation trends while US stocks continue to circle all-time highs.
Bitcoin (BTC) declined into Friday’s Wall Street open as traders increasingly saw a BTC price breakdown next.
Data from TradingView showed BTC/USD down 1.3% on the day at $62,570, near its lowest levels month-to-date.
BTC/USD four-hour chart. Source: Cointelegraph/TradingView
Despite encouraging US inflation data lifting risk assets and reducing the odds of interest-rate hikes, Bitcoin failed to follow US equities, which closed Thursday’s session at all-time highs. 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
Commenting on Bitcoin price performance, trader and analyst Rekt Capital warned that Sunday’s weekly close needed to be above $63,220.
“A Weekly Close below the orange level would probably set price up for a breakdown,” he wrote in a post on X.
The analyst noted that $63,000 was now failing as support after weakening throughout August, having previously noted that the 50-month exponential moving average (EMA) at $65,827 was back as resistance, copying the 2022 bear market.
BTC/USD one-week chart. Source: Rekt Capital on X.com
Cointelegraph previously reported on increasing chances of a long liquidation event for Bitcoin as it approaches an 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,” onchain analytics platform Glassnode summarized in the latest edition of its regular newsletter, The Week Onchain.
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