BTC Tumbles to $62.5K With Analyst Cautioning Weekly Close Could Trigger Further Decline
The cryptocurrency diverges from American equities, sliding closer to August's lowest points as the S&P 500 maintains momentum at unprecedented levels.
Bitcoin (BTC) experienced further losses heading into Friday's Wall Street trading session as market participants increasingly anticipated a potential BTC price collapse.
Key points:
- The cryptocurrency remains under $63,000, moving progressively nearer to fresh August lows as American equities continue reaching unprecedented peaks.
- Technical assessment indicates that $63,220 needs to be recovered before the weekly close to prevent a more significant decline.
- Investors await PCE inflation figures as the upcoming critical catalyst for risk-oriented assets.
BTC value weakens as equities reach unprecedented peaks
Information from TradingView revealed BTC/USD experiencing a 1.3% daily decline to $62,570, approaching its weakest position for the current month.
Discussing Bitcoin's price action, market analyst and trader Rekt Capital cautioned that the weekly candle close on Sunday must remain 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 market observer highlighted that $63,000 now represents failed support following its weakening performance during August, while also previously pointing out that the 50-month exponential moving average (EMA) positioned at $65,827 has returned as overhead resistance, mirroring patterns from the 2022 bear market.
Cointelegraph had earlier highlighted mounting probabilities of a significant long liquidation scenario for Bitcoin as the asset moves toward a liquidity concentration near $61,000 while open interest (OI) in derivatives markets continues expanding.
PCE figures take center stage following Bitcoin's dismissal of inflation improvement
In their most recent market commentary, investment and trading firm QCP Capital highlighted the digital asset market's failure to respond positively to favorable US inflation trends — a development they characterized as "increasingly important."
"Last week, BTC demonstrated resilience in absorbing several negative headlines without a sustained breakdown," it wrote, adding:
"This week has reinforced the distinction between resilience and momentum: the range remains intact, but softer inflation data have so far generated only a muted response from crypto."
QCP noted that macroeconomic traders have shifted attention toward the Aug. 26 Personal Consumption Expenditures (PCE) index publication, recognized as the Federal Reserve's favored inflation measurement. The metric's most recent reading in July represented its first monthly decrease since 2020, according to information from the Bureau of Economic Analysis.
