Bitcoin (BTC) is experiencing significant volatility despite positive market developments, with its price falling below the crucial $116,000 support level in the last 24 hours. At the time of reporting, BTC was trading down approximately 0.5% with its price resting below $116,000, while trading volume plunged 29% to $30 billion, indicating cautious investor sentiment.
Technical analysis reveals a critical inflection point for Bitcoin. Analyst CryptoELITES predicts a potential rally to $190,000 based on historical trends, emphasizing that BTC must hold the $115,500 level to maintain bullish momentum. Conversely, market expert Ali Martinez warns that if Bitcoin loses the $115,440 support, it could trigger a massive selloff leading to a dip to $93,600. If support holds, Martinez suggests a rally to $137,300 could be possible.
Market data shows mixed signals with BTC Futures Open Interest falling 0.6% to $84.5 billion, while CME Exchange specifically saw a 2.44% plunge to $17.22 billion. Despite the current decline, institutional interest remains strong with US Spot Bitcoin ETFs recording weekly inflows of $886 million.
Key events this week include Fed Chair Jerome Powell's speech on September 23 and the upcoming US PCE inflation data. Wall Street forecasts PCE inflation at 2.7% for August (up from 2.6% in July), with Core PCE expected to remain unchanged at 2.9%. These economic indicators could significantly impact Bitcoin's short-term movement and broader market sentiment.