Bitcoin News: Bitcoin Price Slips to 7-Week Low as $530M Liquidations Fuel Bearish Pressure

Key Takeaways:Bitcoin dropped to its lowest level since July 8, with price dipping below $109,000.Over $530 million in crypto liquidations hit markets in 24 hours, largely driven by whale selling.Analysts say a bullish RSI divergence could spark a short-term bounce toward $123,000.September’s seasonality and fresh US inflation data add to bearish risks, with eyes on Fed rate cuts.Bitcoin Dips Below $109K as Selling Pressure BuildsBitcoin (BTC) fell nearly 4% on Friday, sinking to $108,556, its lowest level since July 8. The move came after a fresh wave of whale selling on Binance, adding to market pressure as bulls failed to defend key support.Data from CoinGlass showed that more than $530 million in crypto long positions were liquidated over the past 24 hours, underscoring heightened volatility.“Good area to keep watching. Right on top of the previous range & consolidation area,” trader Daan Crypto Trades noted, pointing to $108,000 as a critical reversal zone.Bullish RSI Divergence Offers HopeDespite the bearish momentum, analysts highlighted a bullish divergence on Bitcoin’s relative strength index (RSI), which could indicate an early reversal.“$BTC, still coming off of a confirmed Bullish Divergence, can still have a huge reversal back up to $123,000 in the works,” said market commentator Javon Marks, suggesting a potential +15% rebound if momentum shifts.Traders noted that reclaiming $112,000–$114,000 remains essential to confirm recovery and avoid further downside.Macro Factors: Fed Rate Cuts in FocusSeptember is historically Bitcoin’s weakest month, and macro conditions added to pressure.The Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation gauge, met expectations but hinted at a rebound in inflationary pressures.Markets, however, still price in a September rate cut, according to CME FedWatch Tool data. Trading firm Mosaic Asset warned that stronger-than-expected US payrolls next week could change that outlook:“Outlook for rate cuts could be in jeopardy if next week’s payrolls are stronger than expected.”Bitcoin Eyes $108K Support, $123K BounceBitcoin’s immediate outlook depends on whether bulls can defend the $108,000 support zone. If confirmed, RSI signals suggest a relief rally toward $123,000. Failure, however, risks deeper corrections toward $100,000.