Daily News: Bitcoin Drops Sharply Despite In-Line Inflation Data
BTC slides below key levels as whale transfers and positioning fuel uncertainty.
🪙 Crypto Market Update
Bitcoin suffered a sharp sell-off on Friday even though U.S. PCE inflation data met expectations. Interestingly, many altcoins showed only mild losses, highlighting that the move may have been driven more by positioning and capital rotation than fresh macro triggers.
Large on-chain transfers — including a reported 21,000+ BTC movement linked to institutional players — added to speculation in the community.
Short-Term Scenarios
Market dynamics remain split. Traders who shorted last week’s post-Jackson Hole rally are sitting on sizable profits, while bulls are eyeing an open CME gap near $117k as a potential magnet. Those who shorted the rebound around $113k may now be targeting $103k–$104k. In other words, key support and resistance breaks will define the next big swing.
Positive Signals
Despite the sell-off, some metrics point to recovery potential. Spot market bid-to-ask ratios have flipped positive near $108k — historically a signal that strong bounces follow. On-chain data also shows rising daily active addresses, and the percentage of supply in profit has reset to healthier levels. Divergences between professional trader positioning and price action suggest upside potential back toward $118k if sentiment stabilizes.
Bearish Patterns Still in Play
Technically, the drop below $112k pushed BTC back into its old range, with bearish chart structures warning of possible deeper losses. A wedge breakdown already met its $107k target, and total crypto market cap charts suggest further downside risk if support doesn’t hold. A failure to rebound could expose $103k–$102k, and potentially even the mid-$90k zone.
On the flip side, alternative bullish range structures show that if BTC can recover above $111.5k–$112k quickly, momentum could reset and pave the way for renewed upside. A move above $110.6k this weekend is seen as a minimum requirement to keep bulls in play.
Liquidations & Alts
Liquidation clusters around $110k are in danger of being triggered, while a heavy pocket of short liquidations sits near $114k — a potential catalyst if prices bounce. For altcoins, downside in BTC would increase risk, but selective opportunities may emerge if Bitcoin stabilizes. Levels like $190 for Solana could become attractive should the market avoid fresh lows.
📌 Key Takeaways
BTC sold off despite inflation data meeting expectations
Whale transfers and retail positioning likely accelerated the move
Critical bounce needed above $111.5k–$112k to avoid deeper losses
Downside risk: $103k–$102k, with extreme targets near $95k–$98k
Positive signs: spot order flows, address activity, and pro-trader divergence
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