5 min readBitcoin is under pressure once again, falling below 110k as choppy trade across the week continues. The largest cryptocurrency is on track to decline by nearly 5% this week. This puts losses for August at 5.1%, the worst monthly performance since February.
Bitcoin started the week on the back foot after a whale liquidated 24,000 BTC, triggering a flash crash that saw the BTC price drop from $117,000 to $110,000, contributing to a bearish tone towards Bitcoin across the week.
BTC has struggled to gain traction over the week, despite other risk assets, such as US stocks, performing well, and the S&P 500 hitting another fresh record high. And despite an upward revision to US Q2 GDP data.
Trump ends “de minimis” exemption.
However, the mood has soured today after Trump ended the “de minimis” exemption. This marks an end to US duty-free imports of packages worth less than $800. US consumers are now likely to face higher prices, as tariffs will make shipping from overseas retailers (mainly China) more expensive, adding inflationary pressures.
How could the US core PCE impact BTC
Attention is also turning to US core PCE data today for further clues on the Fed’s path for rate cuts. Core PCE, the Fed’s preferred gauge for inflation, is expected to rise to 2.9% YoY in July, up from 2.8% on a monthly basis core PCE is expected to rise 0.3%.
The data comes after a dovish lean from Fed Chair Powell at the Jackson Hole Symposium, who acknowledged downside risks to the labour market and saw a reasonable chance that inflation from tariffs would be short-lived. Following the speech, market expectations for a Fed rate cut in September increased.
Cooler-than-expected core PCE data could fuel bets on a Fed rate cut and offer support to risk assets, such as Bitcoin. Meanwhile, hotter-than-forecast data could drag BTC, which is already under pressure, lower.
Trading involves risk.
ADA drops 5% testing a key support
The selloff is not just being seen in Bitcoin; cryptocurrencies across the board are dropping sharply on Friday. Cardano trades -5% over the past 24 hours, marking a 10% loss for the week, and moving away from the $1.02 high reached in mid-August. However, the price has jumped over 40% from its June low, reflecting growing interest in the altcoin as capital rotates out of BTC.
Short-term market sentiment appears mixed. The taker buy volume shows a slight bullish bias. The long/short shows a rise in bullish bets among traders, suggesting cautious optimism. However, the technical picture shows key support is being tested.
ADA forecast – technical analysis
ADA/USD has pulled back from $1.02; the price appears to be finding support on the 50 SMA and rising trendline support. A breakdown of this support could open the door to a deeper selloff to 0.73, the 200 SMA. Meanwhile, a rise of over 0.91 is needed to confirm a bullish recovery.
Trading involves risk.
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