Why is Bitcoin price down today?
Bitcoin ETFs have witnessed $287.80 million in daily outflows amid a growing de-risking mood across the crypto and traditional risk markets.
Bitcoin’s price is falling today, mirroring declines across the global risk markets due to fears about the economic outlook.
Recession risks pressure Bitcoin, stocks lower
As of Sept. 4, BTC was down 3.30% to around $55,600, its lowest in a month. Similarly, S&P 500 futures dropped 0.4% following their worst performance since the Aug. 5 market meltdown.
Crypto traders are preparing for more market volatility as they wait for key economic data to see if the United States is nearing a recession and how the Federal Reserve might adjust its policies.
A jobs report on Sept. 4 will likely show a slowdown in the labor market, following recent data revealing a fifth straight month of declining manufacturing activity. With concerns shifting from inflation to economic growth, weak macro data pressures stocks and risk-on assets like cryptocurrencies.
For instance, the anticipation of a cooling jobs market has coincided with $287.80 million worth of daily outflows from Bitcoin exchange-traded funds (ETF), marking the longest outflow streak since June.
Get to know Godleak
Godleak crypto signal is a service which provide profitable crypto and forex signals. Godleak tried to provide you signals of best crypto channels in the world.
It means that you don’t need to buy individual crypto signal vip channels that have expensive prices. We bought all for you and provide you the signals with bot on telegram without even a second of delay.
Godleak crypto leak service have multiple advantages in comparision with other services:
- Providing signal of +160 best crypto vip channels in the world
- Using high tech bot to forward signals
- Without even a second of delay
- Joining in +160 separated channels on telegram
- 1 month, 3 months , 6 months and yearly plans
- Also we have trial to test our services before you pay for anything
For joining Godleak and get more information about us only need to follow godleak bot on telegram and can have access to our free vip channels. click on link bellow and press start button to see all features
Join for Free
☟☟☟☟☟
https://t.me/Godleakbot
Also you can check the list of available vip signal channels in the bot. by pressing Channels button.
Bitcoin OI and funding rates data indicate caution
Bitcoin’s decline today and recently coincides with the declining open interest (OI) in its future market.
As of Sept. 4, the Bitcoin futures market’s outstanding contracts were at around $30 billion, down from its July peak of $37.50 billion. The decline shows that traders have become less confident about Bitcoin’s near-term price movements and are, therefore, reducing their open futures positions.
Meanwhile, intraday data shows a strong decline in the funding rates of Bitcoin futures. Between Sep. 3 and Sep. 4, they fell from 0.0074% per eight hours to 0.0007% per eight hours, suggesting there’s now less demand for leveraged long positions.
In other words, fewer traders are betting on Bitcoin’s price increase in the short term—another de-risking signal in the hour leading up to the US jobs data.
Bitcoin’s rising wedge breakdown is underway
Chart technicals show that Bitcoin’s losses on Sept. 4 are part of a breakdown stage in a prevailing rising wedge pattern.
A rising wedge is characterized by two ascending, converging trendlines. It resolves when the price decisively breaks below the lower trendline and falls by as much as the maximum distance between the upper and lower trendline, representing the breakdown stage.
Therefore, BTC’s rising wedge downside target for September is at around $54,000, down about 4.5% from the current price levels.
Conversely, a rebound from Bitcoin’s current support—the 0.618 Fibonacci retracement level at around $56,300—will likely invalidate the wedge breakdown setup, triggering the price toward the 0.382 Fib line at around $59,000 instead, or a 5% gain from current price levels.
This level coincides with BTC’s 50-4H exponential moving average (50-4H EMA; the red line).
