Bitcoin Slips Below $109K as Inflation Data Fails to Spark Rebound
Liquidity builds at $108,200 while traders eye deeper drop toward $100K
Bitcoin showed no sign of recovery on Friday, even after the release of the US Personal Consumption Expenditures (PCE) index at 2.7%, a reading in line with expectations. Instead, sellers continued to pressure the market, with BTC falling through $109,000 support during Wall Street’s weekly close.
Bears Push Toward Key Levels
Market data revealed bids clustered at $108,200 on Binance, creating a magnet for momentum as sellers attempted to force Bitcoin lower. Meanwhile, liquidations stacked above $110,000, setting the stage for heightened volatility.
Onchain platform Glassnode noted another wave of long liquidations below $111,000, describing the sell-off as part of a broader deleveraging event. Such flushes, it explained, often reset market positions and reduce the risk of further cascades.
Traders Warn of $101K Retest
Investor Ted Pillows pointed out that Bitcoin now hovers at a critical support level.
“If this level holds, Bitcoin could rally toward $112,000. In case of a breakdown, BTC will retest the $101,000 region before reversal,” he said.
With sentiment fragile, many traders have adopted a cautious stance, with $100,000 now seen as a realistic downside target.
Inflation Fails to Provide Relief
The release of the PCE index — the Fed’s preferred inflation measure — showed 2.7%, the highest reading since February 2025. Despite inflation pressures, analysts believe the Federal Reserve will maintain its course of interest-rate cuts, keeping hopes alive for risk assets in the medium term.
“PCE inflation is at its highest since February 2025. Yet, the Fed will keep cutting rates,” wrote The Kobeissi Letter.
What’s Next for Bitcoin?
With liquidity stacked on both sides of the market and macroeconomic conditions offering little clarity, Bitcoin’s next move hinges on whether $109K support holds or breaks. For now, the market faces a battle between cautious bulls and increasingly aggressive bears.
