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The cryptocurrency market had a bullish close on Friday following the first Fed rate cut this year.

However, Bitcoin and other leading cryptocurrencies failed to build on this momentum and could now face further downward movement in the near term.

The crypto market is having a poor start to the market as Bitcoin and other major cryptocurrencies record huge losses.

Bitcoin surged past the $117k mark last week after the United States Federal Reserve cut interest rates by 25 basis points.

However, Bitcoin failed to build on this momentum, losing more than 3% of its value over the weekend. The bearish performance saw Bitcoin briefly drop below the $112k level earlier today.

At press time, BTC is trading at $113k per coin, with the flash drop causing over $1 billion in liquidations from the crypto market.

BREAKING: $1,000,000,000 worth of crypto longs liquidated in the past 30 minutes.

The negative performance comes as traders focus their attention on Jerome Powell’s speech tomorrow.

Fed Chairman Jerome Powell and nine other officials are scheduled to speak this week. The financial markets are likely to closely watch the events for cues on the interest rate trajectory.

Despite the rate cuts last week, Powell dampened market optimism by stressing a data-dependent stance.

In addition to that, the U.S. core PCE index will be published on Friday.

The PCE is the Fed’s preferred measure of inflation, with analysts predicting an inflation increase of 2.7% year-on-year, with core jumping 2.9% in August.

The BTC/USD 4-hour chart is bearish and efficient thanks to Bitcoin’s poor performance over the weekend.

Failure to push past the $117k resistance level last week renewed selling pressure from the key hurdle, resulting in BTC dropping to the $111,750 region earlier today.

The technical indicators have also temporarily switched bullish. The MACD lines crossed over into the negative territory over the weekend, suggesting that the bears are currently in control.

The RSI has dropped below the neutral 50, indicating a bearish market trend.

The support at $114,473, which was Bitcoin’s 50-day simple moving average, was broken as selling pressure increased. The next major support level is around the $110k region, with the bulls now defending this region.

Failure to defend this region could see BTC sweep the Sept. 1 lows near $107,300.

However, if the flash dump serves as the liquidity to push BTC harder, the leading cryptocurrency could rally towards the $116k resistance level in the near term.

Bitcoin will need to overcome last week’s high of $118k before it can effectively weaken the persistent bearish case.

At the moment, the market conditions remain volatile, with sellers in firm control. Powell’s speech tomorrow could give the market a clear direction for the remainder of the week.

The post Bitcoin dips below $112k ahead of Powell’s speech; check forecast appeared first on Invezz

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