Bitcoin slid toward $77,000 on Friday, extending a weekly drop of 5%, as traders priced in higher odds of a US rate hike ahead of the August CPI report. Technical charts show the token testing a key support zone, with a break lower opening the door to $72,000–$74,000.
Bitcoin traded at roughly $77,000 as of European morning hours Friday, down more than 1% over 24 hours and 5% on the week, according to CoinDesk data. The slide came hours before the August CPI report, due at 8:30 am ET.
Rate-hike bets climb before CPI
The CME FedWatch tool put the chance of a hike next week at 69%, up from 59% a week ago and 48% a month ago, though the reading had eased from 72% on Thursday. A quarter-point move would take the target range to 375–400 basis points.
Separately, interest-rate futures placed the probability of a rate increase at about 67% on Sept. 11, according to Reuters. That came after US wholesale prices rose 0.4% in August and 5.4% from a year earlier, according to the Associated Press. Higher borrowing costs tend to pressure Bitcoin and other risk assets because investors can earn better returns from government debt without taking on crypto-market volatility.
Bitcoin tests a key support zone
Bitcoin lost the $78,000 support area and fell below its 20-day moving average at $78,601. The 4-hour RSI dropped to 34.25, approaching but not yet reaching the oversold threshold of 30.
Immediate support sits between $76,000 and $76,500, and a decisive move below $76,000 could expose $75,000 before the $72,000–$74,000 zone comes into view. Analyst Ted Pillows said Bitcoin was testing its 50-week exponential moving average, saying "A weekly close below this could push Bitcoin towards $72,000-$74,000".
Oil and yields add to the pressure
Brent crude held above $100 a barrel after approaching $110 earlier in the week. The 10-year Treasury yield moved close to 5% as the global bond selloff continued. Bulls still need to recover $78,000 first to weaken the short-term bearish setup, while the Fed's Sept. 15–16 policy meeting remains a separate macro catalyst for crypto investors.
Sources: CoinDesk, crypto.news
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