Bitcoin price drops to $62.5K as trader warns weekly close may spark more losses

Bitcoin (BTC) declined into Friday’s Wall Street open as traders increasingly saw a BTC price breakdown next.

Key points:

• Bitcoin stays below $63,000, heading steadily closer to new August lows while US stocks build on record highs.
• Analysis says that $63,220 must be reclaimed by the weekly close to avoid a deeper rout.
• Markets look to PCE inflation data as the next key test for risk assets.
  

Bitcoin price sags with stocks at all-time highs

Data from TradingView showed BTC/USD down 1.3% on the day at $62,570, near its lowest levels month-to-date.

Despite encouraging US inflation data lifting risk assets and reducing the odds of interest-rate hikes, Bitcoin failed to follow US equities, which closed Thursday’s session at all-time highs. The S&P 500 and tech-heavy Nasdaq Composite Index were both green at the time of writing, up 0.11% and 0.14%, respectively.

BTC/USD vs. S&P 500 one-hour chart. Source: Cointelegraph/TradingView

Commenting on Bitcoin price performance, trader and analyst Rekt Capital warned that Sunday’s weekly close needed to be above $63,220.

“A Weekly Close below the orange level would probably set price up for a breakdown,” he wrote in a post on X.