Highlights:
Sellers of Bitcoin are trying to breach the support level at $109,000 during the last Wall Street open of the week.
Due to this, BTC’s price could drop towards $100,000 despite a significant “deleveraging” event.
US PCE inflation does not provide any support for cryptocurrency enthusiasts.
At the opening of Wall Street on Friday, Bitcoin (BTC) threatened new lows for September as US inflation figures did not support bullish sentiment.
Liquidity increases as Bitcoin price declines
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD was at risk of dropping below $109,000.
Liquidity in exchange order books remained robust on both sides of the current price, creating potential triggers for both upward and downward momentum.
On Binance, the largest global exchange, buy orders were concentrated around $108,200, with potential liquidations for short positions at $110,000 and higher, according to CoinGlass data.
“Another wave of long liquidations occurred as Bitcoin dipped below $111k,” noted on-chain analytics platform Glassnode in a post on X.
“This liquidation wave suggests a broad deleveraging event, which can reset market positions and reduce the risk of further declines.”
Despite this, traders maintained a risk-averse stance, with price targets for BTC moving towards $100,000 gaining traction.
“$BTC is sitting just above its support level,” commented crypto investor and entrepreneur Ted Pillows in a post that day here.
“If this support holds, Bitcoin could surge towards $112,000. Conversely, a breakdown might see BTC retest the $101,000 support range before a rebound.”
PCE data reinforces Fed rate-cut anticipations
Macroeconomic events had minimal visible effect on the trajectory of the cryptocurrency market.
Related: Bitcoin experiences significant fear for the first time since $83K as analysts identify a potential ‘turning point’
According to the Personal Consumption Expenditures (PCE) index, widely regarded as the US Federal Reserve’s “preferred” inflation measure, it met expectations with a value of 2.7%.
In response, the trading resource The Kobeissi Letter concluded that while PCE is at its highest level in seven months, the Fed is likely to continue implementing the interest-rate cuts that crypto and risk-asset traders strongly desire.
“PCE inflation is at its peak since February 2025. However, the Fed will persist in cutting rates,” it informed its X followers.
This article does not provide investment advice or recommendations. All investments and trading actions come with risks, and readers should perform their due diligence before making decisions.
