Bitcoin traded near $62,570 on Friday, and analyst Rekt Capital warned that Sunday's weekly close must hold above $63,220 to avoid a deeper breakdown. A delay in a planned SEC exemption for tokenized securities and continued selling by Strategy added to the pressure, even as cooling US inflation lifted stocks to record highs.
Bitcoin (BTC) fell 1.3% to $62,570 heading into Friday's Wall Street open, and trader and analyst Rekt Capital said Sunday's weekly close needs to land above $63,220 to avoid a deeper rout. According to Rekt Capital: "A Weekly Close below the orange level would probably set price up for a breakdown."
$63,000 is now failing as support after weakening through August, and Rekt Capital had previously flagged the 50-month exponential moving average near $65,827 as resistance, likening the setup to the 2022 bear market.
Bitcoin ignores inflation relief
The slide comes despite US stocks closing Thursday's session at all-time highs, with the S&P 500 and Nasdaq Composite both green. Yet Bitcoin failed to follow, and trading firm QCP Capital said crypto's refusal to rally on improving inflation data has become increasingly important. Markets now look to the Aug. 26 PCE inflation report, the Fed's preferred gauge, after last month's print marked its first monthly decline since 2020.
Regulatory delay and continued selling
Bitcoin also fell 1.9% to $62,701.4 on Friday. It was down more than 3% for the week. CoinDesk reported the SEC is set to further delay its planned "innovation exemption" for tokenized securities. The Digital Asset Market Clarity Act has faced numerous delays over the past year, and delays in passing it have also weighed on crypto prices, per Investing.com. Separately, Strategy sold another 1,690 BTC for $108.6 million this week. Bitcoin also touched a 10-day low of $62,500 in the same period, and Strategy CEO Phong Le said the firm plans to resume its Bitcoin purchases by the end of the year.
Sources: Cointelegraph, Investing.com, CryptoPotato
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