Bitcoin begins the second week of September under significant resistance, with traders targeting potential downside levels. After coiling below $112,000, concerns of a possible 10% dip are growing. Analysts are closely watching key support levels, with many suggesting that Bitcoin could drop to about $100,000, or potentially lower if a capitulation occurs, with some forecasts suggesting a bottom at around $87,000. This week notably features critical economic data releases, such as the Producer Price Index (PPI) and Consumer Price Index (CPI), amid debates regarding the Federal Reserve's upcoming interest rate adjustments. Additionally, there are signs of a shift in institutional interest, with reports indicating a flow back into Bitcoin from Ether exchange-traded products (ETPs). However, whale activity is concerning, with a significant drop in holdings over the past month, reminiscent of previous bear markets. The Bitcoin futures market also shows potential liquidity issues, with declining buy/sell ratios raising alarms. Overall, the outlook for Bitcoin appears cautious as it navigates these economic and market dynamics.

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