Bitcoin just got pulled into the chip stock wreckage, sliding toward its lowest levels since late May.
Micron’s blowout earnings beat helped steady sentiment overnight, while Thursday’s U.S. core PCE print could give traders the next big macro cue.
Can BTC/USD hold nearby support and squeeze out a relief bounce, or are sellers not done making their point?
Bitcoin (BTC/USD): 4-hour
Bitcoin (BTC/USD) 4-hour Chart Faster with TradingView
A global tech selloff hit risk assets this week as worries over stretched AI valuations finally started biting. The Philadelphia Semiconductor Index dropped 7.6% on Tuesday alone, and Bitcoin got dragged along for the ride.
The stronger U.S. dollar didn’t help either. Hawkish Fed signals after Chair Warsh’s first press conference kept pressure on speculative assets, giving crypto bulls one more headache to deal with.
But Micron helped calm things down after Wednesday’s close. The chipmaker posted revenue and guidance that easily topped expectations, giving the AI demand story a fresh shot of life and helping crypto bounce off its lows.
Now traders turn to Thursday’s U.S. core PCE report, the Fed’s preferred inflation gauge. A soft or in-line reading could cool near-term rate hike bets and take some wind out of the dollar’s sails.
BTC/USD dropped as low as $59,000 this week before clawing back some ground, with price now sitting just above the S2 Pivot Point ($59,148) and the June swing lows.Remember that directional bias and volatility in BTC/USD are often driven by market sentiment. If you haven’t done your homework on bitcoin and the U.S. dollar, it’s time to check the economic calendar and stay updated on daily fundamental news.
If buyers can keep the S2 and June lows zone intact, BTC/USD could bounce toward S1 at $61,192 first. From there, stronger bullish momentum could open the door to the 100 SMA, Pivot Point, and mid-range cluster, then R1 near $66,268.
On the flip side, a hot PCE print could firm up rate hike expectations, keep dollar bulls in the driver’s seat, and put pressure back on bitcoin. A clean break and close below S2 at $59,148 could open the door toward the $56,000 – $57,000 area.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
This article covers BTC/USD getting swept into a broader risk-off selloff, but not everyone is familiar with how global risk sentiment works as a market force. Premium members can read our lesson:
📖 Risk-On / Risk-Off: How Global Mood Moves Currencies
Reading this helps you understand why risk assets like Bitcoin sell off when broader market sentiment turns negative, which macro signals flag a shifting risk environment, and how to check risk conditions before placing any trade.
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