Bitcoin (BTC) fell sharply on Friday, hitting multiweek lows as heavy whale selling and cascading liquidations pushed the cryptocurrency closer to the $108,000 level. Daily losses neared 4% as BTC/USD marked its weakest point since July 8, according to data from Cointelegraph Markets Pro and TradingView.
Whale pressure drives decline
Whale distribution on Binance and other major exchanges added significant downside pressure, fueling a new wave of selling after the Wall Street open. CoinGlass data showed nearly $540 million in crypto liquidations over the past 24 hours, the majority stemming from long positions caught off guard by the latest pullback.
Market analysts flagged the current zone as a key reversal area. Trader Daan Crypto Trades noted that price was testing the top of a previous consolidation range, while fellow trader Crypto Caesar highlighted Bitcoin’s repeated failure to reclaim $112,000 as support.
RSI divergence offers slim hope
Despite the sell-off, some short-term technical indicators suggest a potential recovery. A bullish relative strength index (RSI) divergence remains in play on the four-hour chart, where RSI has formed higher lows while price records lower lows.
“$BTC still coming off of a confirmed bullish divergence can have a huge reversal back up to $123,000 in the works,” analyst Javon Marks argued, suggesting a potential +15% rebound from current levels if momentum turns.
Macro pressures weigh on sentiment
Bitcoin’s weakness also reflects seasonal and macroeconomic headwinds. September is historically the weakest month for BTC returns, while fresh US inflation data added to concerns.
The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) Index, met expectations but signaled renewed upward pressure. Despite this, CME FedWatch Tool data showed markets still pricing nearly 90% odds of a September rate cut, a key potential tailwind for risk assets.
Trading firm Mosaic Asset, however, warned that the outlook could change: “Outlook for rate cuts could be in jeopardy if next week’s payrolls are stronger than expected,” it said on X.
