Bitcoin continues to demonstrate weakness, failing to overcome the support level of $112,500, despite favorable external conditions.
Reasons for Cryptocurrency Stagnation
The Non-Farm Payroll data revealed its poorest outcome since late 2021, coinciding with an increase in unemployment rates. Despite discussions about a potential 50 basis point rate cut in September, cryptocurrencies did not surge. President Trump threatened new sanctions against Russia, adding uncertainty to the market.
Current Bitcoin Metrics
Bitcoin's price currently hovers around $110,500, after briefly touching $113,300. The long-term trend shows a series of lower highs, indicating weakness. If current trends continue, Bitcoin may test levels below $100,000.
Outlook for the Crypto Market
September is historically a month of negative sentiment for Bitcoin. Given the uncertainties surrounding the Fed meeting and the pace of interest rate cuts, the likelihood of Bitcoin moving downward remains high. Without Trump's attempt to remove FOMC member Cook, the situation might have been more favorable for Bitcoin's chart.
In the current environment, Bitcoin faces numerous challenges, including both internal and external factors, which may lead to continued volatility in the cryptocurrency market.
