Key takeaways
- Bitcoin is down 1% in the last 24 hours, dropping below the $112k level.
- The leading cryptocurrency is still holding its value above the $110k support ahead of tomorrow’s PCE data.
BTC dips below $112k as bearish sentiment grows stronger
The cryptocurrency market has been bearish this week, with Bitcoin and other major coins currently underperforming. Bitcoin reclaimed the $114k level on Wednesday but has given up the gains and is now trading below $112k level once again.
The negative performance comes as Fed officials cool expectations on further rate cuts before the end of the year. Chairman Jerome Powell has signaled a cautious approach to future rate cuts despite the Fed cutting rates by 25 basis points earlier this month.
Traders are also cautious ahead of tomorrow’s PCE data release. PCE is the Fed’s primary indicator for inflation and could help the apex bank decide whether to cut interest rates in its next FOMC meeting in October.
BTC could dip below $110k if the bearish trend continues
The BTC/USD 4-hour chart remains bullish and efficient despite Bitcoin losing 4% of its value over the last seven days. The technical indicators are, however, bearish thanks to the ongoing selloff.
The RSI of 38 shows that Bitcoin is heading into the oversold territory if the selloff continues. The MACD lines also crossed into the negative zone over the weekend, signalling a bearish momentum.
At the moment, BTC is trading at $111,793. If the bearish trend continues, BTC could drop below the $110k support level and retest the $107k region for the first time since August 31.
However, if the $110k support level holds and Bitcoin bounces, it could reclaim the first major resistance level at $114k over the coming hours or days. An extended bullish rally would see BTC hit the $118k resistance for the second time this month.