Bitcoin hovered around $118,700 on Friday, after retreating from its all-time high of $124,474 reached earlier on Thursday.
FUNDAMENTAL OVERVIEW:
Bitcoin steadied near key support levels on Friday after sliding 4% the previous day. The drop in the top three cryptocurrencies followed Thursday’s U.S. Producer Price Index (PPI) report from the Bureau of Labor Statistics, which came in well above expectations, signaling a gradual rise in inflation and triggering risk-off sentiment.
On Thursday, Bitcoin hit a record high of $124,474 but quickly lost momentum, ending the day down 4%. By Friday, it was trading around $118,900. The stronger-than-expected PPI data reignited concerns about inflation and reduced the likelihood of a larger September rate cut from the Federal Reserve.
Earlier in the week, crypto markets had rallied on the back of a softer consumer inflation report, increased institutional activity, and policy developments seen as favorable for digital assets. However, most altcoins also retreated on Friday, giving back part of their recent sharp gains.
BTC/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
BTC/USD is trading within an up channel.
BTC/USD is moving below 20& 50 Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Neutral trend.
Immediate Resistance level: 121728
Immediate support level: 116450
HOW TO TRADE BTC/USD
After a significant surge, Bitcoin’s price stabilized, trading within a defined range for a period. It then broke out of this consolidation to reach a new record high. Currently, Bitcoin is experiencing a pullback, retreating towards a key support level. If this support holds, the cryptocurrency could resume its upward trend.
