Bitcoin (BTC) extended its losses on Friday, September 26, trading as low as $108,631 as U.S. second-quarter gross domestic product (GDP) growth revision dampened hopes for more aggressive Fed rate cuts.
Spot Bitcoin exchange-traded funds (ETFs) also took a blow, recording over $253 million in outflows on Thursday, September 25, bringing the total number for the week to roughly $480 million, a figure expected to rise further if prices slide below key support levels.
As things stand, resistance lower than $112,000 ‘isn’t great’ for the cryptocurrency, warned leading crypto analyst Michaël van de Poppe in a social media post on Friday morning.
Looking at the data from the past quarter, van de Poppe predicted that a failure to break out could see the world’s largest crypto sink toward the $107,000 level, a zone he thinks is ‘the first area for a potential bottom on BTC.’
“Basically, beneath the resistance at $112K isn’t great for Bitcoin. That’s why I think we’ll sweep the lows at $107K and see what we’re going to get from there. That’s the first area for a potential bottom on BTC,” wrote the analyst on X.
A pivotal moment for Bitcoin?
Data from the Crypto Fear & Greed Index showed a reading of as low as 28/100 on Friday, its lowest level since April 11, according to CoinMarketCap. The ratio fell 16 points in a single day, showing how quickly sentiment can shift in periods of heightened volatility.
This was due to the broader cryptocurrency market having shed more than $150 billion in value in just 24 hours, with total capitalization plunging from $3.90 trillion to $3.75 trillion at press time. BTC bore the heaviest losses, erasing more than $20 billion.
However, observing the signs of a potential bull trap, analyst Michael Pizzino noted in a YouTube video on Friday morning that while fear levels have indeed intensified, BTC trades significantly above past cycle lows.
This, Pizzino argued, implies the run is potentially not yet over and that we might be witnessing ‘the turning point Bitcoin and crypto have been waiting for,’ as he dubbed it on X.
Looking ahead, traders are focused on upcoming U.S. macro data. September PMI readings and weekly jobless claims scheduled for September 30 and October 2, respectively, could set the tone for the Fed’s next move, either reviving risk appetite or intensifying pressure to test whether the recent plunge is a bull-cycle pause or the start of a deeper correction.
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Source: https://finbold.com/crypto-analyst-reveals-shocking-bitcoin-bottom-price-target/