Bitcoin Price Falls Below $110,000 as ETFs See Outflows
Bitcoin’s price has dipped below $110,000, forming two concerning chart patterns. The head-and-shoulders and rising wedge patterns suggest a potential decline. Additionally, bitcoin ETFs have seen outflows, indicating reduced investor interest.
As of September 27, Bitcoin traded at around $109,600, down 12% from its peak. this drop marks its lowest point since September 2. The decline is partly due to reduced demand from U.S. investors. SoSoValue data shows 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. Thay argue that inflation has been above the 2% target for years and the labor market remains strong. The economy has also shown resilience, growing by 3.8% in the second quarter.
The next key event for bitcoin will be the non-farm payrolls data on Friday. This will influence the Fed’s decision on interest rates in October.
The daily chart shows a head-and-shoulders pattern, signaling a possible further decline. The price has also fallen below the 50-day Exponential Moving Average. The Relative Strength Index points downward, hinting at a drop to $100,000.
The weekly chart reveals a rising wedge pattern, with two converging trendlines. This suggests a bearish breakout. Oscillators like the Relative Strength Index and MACD show a bearish divergence,indicating more downside.
