Bitcoin Drops to Seven-Week Low with $540 Million in Liquidations

Bitcoin declined to its lowest level since July 8, dropping nearly 5% on Friday as selling pressure surged. Traders are reassessing strategies amid a 24-hour liquidation of approximately $540 million.

Market Dynamics

Heavy selling by large holders contributed to the price drop.
Binance's distribution was identified as a significant factor exacerbating losses.
Large accounts triggered stop orders and rapid exits.

Price Levels of Interest

Key levels for Bitcoin include $112,000 as support and $114,000 for weekly close thresholds.
Traders noted a potential bullish reversal pattern (RSI divergence) on the four-hour chart.
Some analysts suggest a rebound toward $123,000 is possible, reflecting a +14% increase from current levels.

Macroeconomic Factors

September has historically been a challenging month for Bitcoin. Recent US inflation data showed signs of an uptick, while markets anticipate potential Federal Reserve rate cuts that could benefit risk assets like cryptocurrencies.

Current Market Sentiment

Traders are closely monitoring Bitcoin's ability to reclaim $112,000 and maintain above $114,000.
Failure to hold these levels may trigger further sell-offs and liquidations.

The market remains cautious as both technical signals and macroeconomic conditions influence trading strategies ahead of upcoming economic data and Federal Reserve decisions.