Bitcoin has reached a new three-week low, filling a gap left in the CME’s Bitcoin futures market from July. The price fell to $114,322 before recovering, fully completing the pattern where gaps from previous trading sessions are often filled. Market sentiment is mixed, with some traders expecting upward momentum following the gap fill, while others remain cautious, citing the need for Bitcoin to reclaim levels above $116,000 to avoid further declines. A popular trader flagged $104,000 as a potential downside target if that level is not regained. Concurrently, Bitcoin's decline appears more pronounced than other risk assets, as new trade tariffs have soured overall market sentiment, yet traditional stocks, such as S&P 500 futures, remained relatively stable. Factors influencing this behavior include recent inflation data and the Federal Reserve's decisions on interest rates, contributing to a tense market environment. Overall, the cryptocurrency outlook remains uncertain amid external economic pressures, with traders keenly observing price movements for potential signs of recovery or further downturn.

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