Bitcoin’s $80K battle – Can BTC price withstand this week’s macro test?

This week could be the most consequential for the crypto market.

Technically, Bitcoin [BTC] started September with intense volatility. Following a 5% rally, which saw BTC crossing $82k, the price has struggled to reclaim the $80k level. With BTC losing the momentum at this level, a fresh bearish catalyst could induce violent selling pressure and subsequent waves of liquidations. 

Notably, this is where this week’s macroeconomic data will be critical. As the post below highlights, the impending inflation data could have a significant impact on rate expectations ahead of the September FOMC meeting, with the market remaining in limbo over the Fed’s next step. 

Against this backdrop, a hotter-than-expected print could prompt an immediate unwind of risk assets.

In this context, Bitcoin’s range-bound action could indicate that investors are sitting on the sidelines, with BTC unable to overcome resistance as traders “wait” for this week’s macro reports to come out before taking bigger positions. This leaves the setup increasingly fragile. 

If the volatility picks up, then smart money may take profits and step back from absorbing the selling pressure, causing BTC to fall even more significantly and leading to even greater liquidation. Thus, the critical question is whether Bitcoin’s resilience will be demonstrated and become a major theme for the rest of the month.