Key points:
Bitcoin sellers are trying to break support at $109,000 during the last Wall Street open of the week.
As a result, BTC price action might drop to $100,000, despite a significant “deleveraging” event.
US PCE inflation does not offer any relief for crypto bulls.
Bitcoin (BTC) posed a threat of reaching new September lows at the open of Wall Street on Friday, as US inflation data failed to support bullish sentiments.
Liquidity increases as Bitcoin price declines further
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD was at risk of falling below $109,000.
Order-book liquidity on exchanges remained substantial on both sides of the spot price, creating “magnets” for momentum in both directions.
On Binance, the largest global exchange, bids were concentrated around $108,200, with short liquidations expected at $110,000 and above, according to CoinGlass data.
“Bitcoin futures experienced another wave of long liquidations as the price dipped below $111k,” onchain analytics platform Glassnode summarized in a post on X.
“This flush of leverage indicates a broad deleveraging event, often resetting market positioning and reducing the risk of further cascades.”
Nonetheless, traders remained cautious, with price targets for BTC around $100,000 gaining traction.
“$BTC is sitting just above its support level,” noted crypto investor and entrepreneur Ted Pillows in a post.
“If this level holds, Bitcoin may rally towards $112,000. If it breaks down, BTC will likely retest the $101,000 support area before rebounding.”
PCE data supports Fed rate-cut anticipations
Macroeconomic developments showed minimal noticeable impact on the direction of the crypto market.
Related: Bitcoin faces significant fear since $83K as analysis highlights a potential ‘turning point’
The Personal Consumption Expenditures (PCE) index, recognized as the US Federal Reserve’s “preferred” inflation metric, came in at 2.7%, aligning with expectations.
In response, trading resource The Kobeissi Letter concluded that while PCE reached seven-month highs, the Fed would continue with the rate cuts desperately sought after by crypto and risk-asset traders.
“PCE inflation is at its peak since February 2025. Yet, the Fed intends to keep cutting rates,” it informed followers on X.
This article does not provide investment advice or recommendations. All investment and trading actions carry risks, and readers should perform their own research before making decisions.
