Bitcoin has been underperforming since the start of the week, losing over 6% of its value in the last seven days.

The recent rate cut hasn’t caused a pump as many expected, with technical indicators suggesting further downward movement for Bitcoin.

Bitcoin, the leading cryptocurrency by market cap, has lost nearly 2% of its value in the last 24 hours and has dropped below $110k.

At press time, BTC is trading at $109,612 and could dip further in the near term.

The bearish performance comes as the broader cryptocurrency market undergoes a sell-off.

The crypto market has wiped out over $170 billion in the last 24 hours, with the total crypto market cap now at $3.74 trillion.

Furthermore, traders have recorded heavy losses since the start of the week, with over $1 billion worth of long positions liquidated in the last 24 hours.

JUST IN: Over $1,000,000,000 worth of crypto longs liquidated in the past 24 hours.

Traders are looking ahead to the release of the Personal Consumption Expenditures (PCE) Price Index data for August later today.

The PCE is the Fed’s true measure of inflation and could be critical in helping the apex bank decide whether to cut the interest rate in its next FOMC meeting.

The core Personal Consumption Expenditures Price Index is expected to rise 0.2% MoM and 2.9% YoY in August.

Meanwhile, headline annual PCE inflation is expected to increase to 2.7%.

There could be a lot of volatility later today as Fed officials consider this inflation data when deciding on the next policy move.

Fed Chair Jerome Powell recently pointed out that the risk of persistent inflation from tariffs should be managed and assessed ahead of the next policy meeting.

The BTC/USD 4-hour chart is bearish and inefficient as Bitcoin has been underperforming in recent days.

The bearish performance comes as BTC failed to find support around the daily level of $116,000 last week, losing 3% of its value within four days.

This saw BTC close below the 50-day Exponential Moving Average at $113,490 on Monday before continuing its bearish momentum on Thursday after slightly recovering on Wednesday.

At press time, BTC is trading at around $109,600 and could experience further volatility in the near term.

If the correction continues, BTC could decline towards the next major support level at $107,245.

The Relative Strength Index (RSI) of 37 shows that Bitcoin is bearish and could enter the oversold region if the trend continues.

Furthermore, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover earlier this week, indicating that the sellers are currently in control.

However, if Bitcoin recovers from its ongoing slump, it could rally towards the first resistance and TLQ level at $113,800 over the coming hours or days.

The post BTC could dip to $107k amid bearish price action: Check forecast appeared first on Invezz

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