Bitcoin Slides Below $63K, Traders Eye Weekend Close for Next Move

Bitcoin dropped to $62,490, down 1.4% on the day, pulling further away from the $63,000 mark even as Wall Street pushed to fresh record highs.

The S&P 500 and Nasdaq both edged higher Friday, but bitcoin failed to catch the same tailwind, despite inflation data coming in better than expected.

Weekend Close Could Decide Next Direction

Bitcoin needs to close the week above $63,220, warning that a close below this level would likely open the door to further downside. Analysts noted that $63,000 has stopped acting as support after weakening through August, while a longer-term moving average near $65,800 now sits as resistance overhead.

Rising Risk in Derivatives Market

Analytics firm Glassnode flagged that traders have piled into long positions without matching buying demand behind them, raising the odds of forced selling if price slips further. This comes as bitcoin approaches a liquidity zone near $61,000 where large numbers of leveraged positions could get wiped out.

Inflation Relief Fails to Spark a Rally

Crypto’s muted reaction to improving inflation numbers is becoming an important signal. While bitcoin held up against negative headlines last week, this week showed the difference between simply holding steady and actually building upward momentum. Traders are now turning their attention to the upcoming PCE inflation report due later this month, seen as the next major test for risk assets.