Bitcoin’s<\/a>\u00a0stumble appears to be a natural pullback after a strong rally, amplified by macroeconomic headwinds and technical unwinding.<\/p>\n\u200bIf inflation data points toward a more dovish Federal Reserve (Fed) or if institutional demand resurfaces, Bitcoin could regain momentum. Conversely, further hawkish signals or large position liquidations could extend the slide.<\/p>\n
\u200bBitcoin has fallen by around 7% over the past week as profit-taking after record highs, reduced optimism for aggressive Fed rate cuts, and over $1 billion in leveraged liquidations pressured the crypto currency.<\/p>\n
\u200bAdditional weakness came from\u00a0exchange-traded fund (ETF) outflows and broader macroeconomic uncertainty following last week\u2019s unexpectedly sharp increase in the US Producer Price Index (PPI).<\/p>\n
\u200bThe majority of analysts view the recent drop as a consolidation phase rather than the start of a deeper downturn but technical analysts look at key technical support levels to gauge what may happen next.<\/p>\n
\u200bBitcoin bearish setup<\/p>\n
\u200bMonday\u2019s fall through the April-to-August uptrend line at $117,104 turned the short-term technical tone negative.<\/p>\n
\u200bThe area around the 55-day simple moving average (SMA) at $115,149.85 currently acts as support but a daily chart close below it would probably open the door to the key $111,982.45\u2013$111,965.80 support band (May peak to early-August low).<\/p>\n
\u200bAdditional support sits at the June peak near $110,617.03.<\/p>\n
\u200bBullish setup<\/p>\n
\u200bIf price steadies above or around the $111,982.45-to-$111,965.80 support area, another leg up could target the mid\/late-July highs at $119,815.35-to-$121,012.09, now likely to act as a resistance zone.<\/p>\n
\u200bBeyond that, the July peak at $123,181.77 and the current August record at $124,277.50 come back into view.<\/p>\n
\u200bDaily Bitcoin candlestick chart\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"\u200b\u200b\u200bIs Bitcoin topping out or just consolidating? Bitcoin’s\u00a0stumble appears to be a natural pullback after a strong rally,…\n","protected":false},"author":2,"featured_media":77752,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[84,467,56,54,55],"class_list":["post-77751","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-markets","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/77751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=77751"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/77751\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/77752"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=77751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=77751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=77751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}