Bitcoin Faces Pressure as ETFs Slow Down and Chart Patterns Signal Decline
Bitcoin’s price has dipped below the $110,000 mark, revealing two concerning chart patterns. The digital currency is now trading around $109,600, down 12% from its peak. This decline is the lowest since September 2.
One reason for this drop is the reduced demand from U.S. investors.SoSoValue data shows that Bitcoin ETF inflows have slowed for two weeks. This week, all Bitcoin ETFs saw outflows of $902 million, compared to $886 million added the previous week.
Federal Reserve officials like Austan Goolsbee and beth Hammack have warned against interest rate cuts. They argue that inflation is above the 2% target and the labor market remains strong. The economy has also shown resilience,growing by 3.8% in the second quarter.
Looking ahead, the non-farm payrolls data on Friday will be crucial. It will influence whether the Fed cuts interest rates in October.
On the technical side, Bitcoin has formed a head-and-shoulders pattern, signaling further decline. It has also moved below the 50-day Exponential Moving Average.The Relative Strength Index is pointing downwards, suggesting a potential drop to $100,000.
The weekly chart shows a rising wedge pattern,with two converging trendlines. This indicates a possible bearish breakout. additionally, the Relative Strength Index and MACD show a bearish divergence, reinforcing the downward trend.
These patterns suggest that Bitcoin could face more downward pressure in the coming weeks.
