Urgent: Bitcoin Price Plunges, Bears Breach $109K Support Amidst PCE Inflation Data

The cryptocurrency market often reacts sharply to macroeconomic signals. However, recent movements show Bitcoin (BTC) charting its own course. Despite the release of key US inflation data, the **Bitcoin price** showed no major rebound. Bears actively worked through critical support levels. This latest downturn leaves many wondering about Bitcoin’s immediate future.

**Bitcoin Price** Action: Bears Target Key Support

Bitcoin’s value faced significant pressure during Friday’s Wall Street open. US inflation data failed to offer relief to struggling bulls. Data from Crypto News Insights Markets Pro and TradingView highlighted a clear risk. BTC/USD threatened a breakdown below the crucial $109,000 mark. This level represents a psychological and technical barrier for traders. Exchange order-book liquidity remained substantial. It created both upside and downside ‘magnets’ for market momentum. On Binance, the world’s largest global exchange, bids clustered around $108,200. Furthermore, short liquidations loomed at $110,000 and above, according to CoinGlass data.

Onchain analytics platform Glassnode observed a fresh wave of long liquidations. This occurred as the **Bitcoin price** moved below $111,000. Glassnode noted, “This flush of leverage reflects a broad deleveraging event, often resetting market positioning and easing the risk of further cascades.” Such events can be painful in the short term. However, they sometimes pave the way for healthier, less leveraged market conditions in the long run. Despite this potential ‘reset,’ traders remained largely risk-averse. Many began to eye lower price targets for BTC.

Understanding **PCE Inflation** and Its Limited Impact

Macroeconomic events typically influence asset prices. Yet, the Personal Consumption Expenditures (PCE) index had little perceptible impact on the crypto market’s trajectory. The PCE index serves as the US Federal Reserve’s ‘preferred’ inflation gauge. It arrived precisely in line with expectations, registering at 2.7%. This figure matched forecasts, indicating no major surprises for economists or traders. Still, it offered no immediate relief for crypto bulls hoping for a positive catalyst.

Trading resource The Kobeissi Letter analyzed the PCE data. They concluded that despite PCE inflation reaching seven-month highs, the Fed would likely proceed with interest-rate cuts. These cuts are eagerly anticipated by both crypto and broader risk-asset traders. The Kobeissi Letter stated, “PCE inflation is at its highest since February 2025. Yet, the Fed will keep cutting rates.” This outlook suggests that while inflation remains a concern, the central bank’s dovish stance might eventually benefit risk assets like Bitcoin. However, the market did not react immediately to this forward-looking perspective.

**BTC Price** Trajectories: $100,000 in Focus

With current market sentiment, lower **BTC price** targets gained traction. Crypto investor and entrepreneur Ted Pillows offered a market take. He stated, “$BTC is hovering just above its support level. If this level holds, Bitcoin could rally towards $112,000. In case of a breakdown, BTC will retest $101,000 support region before reversal.” This analysis highlights the critical nature of the current support zone. A failure to hold could trigger further declines. The prospect of Bitcoin revisiting the $100,000 region became a more popular discussion point among analysts. This reflects a cautious outlook dominating the market.

The large deleveraging event observed in Bitcoin futures could, in theory, stabilize the market. However, the immediate reaction points to continued downward pressure. Traders are adjusting their positions. They prepare for potential further drops. The focus now shifts to whether the market can find a solid floor. Can it absorb the selling pressure effectively? This situation underscores the importance of monitoring on-chain data and technical indicators closely. These tools provide valuable insights into market health and potential future movements.

Deep Dive into **Bitcoin Support** Levels

The $109,000 level proved particularly vulnerable. Its breach signals a shift in market dynamics. For many traders, losing such a significant support point indicates a stronger bearish sentiment. The next critical **Bitcoin support** zone appears around $108,200, where bid liquidity is concentrated on major exchanges. Below this, the $101,000 to $100,000 range becomes the next major psychological and technical battleground. Historically, round numbers like $100,000 often act as strong support or resistance. They draw significant trading activity.

Understanding these support levels is crucial for risk management. Traders often place stop-loss orders just below these zones. A break below them can trigger a cascade of selling. This amplifies downward momentum. Conversely, a strong bounce from these levels can signal a potential reversal. It can attract new buyers back into the market. The current environment demands vigilance. Market participants must watch these key levels closely for any signs of stabilization or further deterioration. The battle between bulls and bears continues, with each level representing a significant skirmish.

Broader **Crypto Market Analysis** Amidst Macro Data

The broader **crypto market analysis** reveals a sector still heavily influenced by Bitcoin’s movements. Altcoins often follow BTC’s lead. When Bitcoin struggles, the wider market typically experiences headwinds. The lack of positive reaction to the PCE data suggests that macro factors, while important, are not the sole drivers. Internal market dynamics, such as deleveraging and liquidity shifts, play a substantial role. The ‘fear’ sentiment, as noted by some analysts, also remains elevated. This suggests that investors are proceeding with extreme caution.

The current situation highlights a complex interplay of forces. These include technical indicators, on-chain metrics, and traditional economic data. Investors must consider all these elements when forming their strategies. The path forward for Bitcoin and the broader crypto market remains uncertain. However, continued monitoring of key support levels, inflation trends, and central bank policies will be essential. This comprehensive approach helps navigate the volatile landscape of digital assets.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk. Readers should conduct their own research when making a decision.