Bitcoin Macro Index Signals Potential Failure of $110K Price Rally
Bitcoin (BTC) is currently trading at $84,986 after facing a rejection at $89,000, with a daily trading volume exceeding $30 billion. The Bitcoin Macro Index indicates potential market weakness.
Key Points
- BTC is down 1.76% and shows bearish divergence in the Bitcoin Macro Index.
- On-chain metrics indicate weakening bullish momentum since late 2023.
- Bitcoin whales are reducing leverage, signaling decreased risk appetite, often linked to bearish trends.
- US PCE core inflation rose to 2.8%, contributing to BTC's price pressure below $85,000.
- Veteran trader Peter Brandt suggests BTC could decline to $70,000.
- Upcoming options expiry includes 139,000 BTC contracts with a Put/Call ratio of 0.49 and Max Pain point at $85,000.
- Implied volatility has decreased as BTC's major-term volatility fell below 50%.