Why Bitcoin rebounded above $82,000 after crashing below $80,000
Bitcoin rebounded above $82,000 on Friday after stronger-than-expected US inflation data briefly pushed the cryptocurrency below a closely watched support level. BTC fell to approximately $79,800 following September’s Producer Price Index release before buyers stepped in. At the time of this report, Bitcoin is trading near $82,000, up 1.4% over the previous 24 hours. The recovery pared an inflation-driven decline and demonstrated renewed buying interest around $80,000. However, persistent price pressures continued to complicate the outlook for Federal Reserve policy and risk assets. Producer inflation adds to interest rate concerns September headline PPI increased 6.3% year-over-year, exceeding expectations of 5.3%, according to the figures cited in the report. The reading marked its second-highest level since November 2022. https://twitter.com/InvezzPortal/status/2110713087896784955 Core producer inflation also surpassed forecasts, reaching 5% annually compared with expectations of 4.4%. The figures followed Wednesday’s hotter-than-expected Consumer Price Index report, which showed annual headline inflation at 3.7% and core inflation at 2.6%. Together, the releases reinforced concerns that inflation remains persistent, potentially increasing pressure on the Federal Reserve to maintain restrictive policy or consider further tightening. Bitcoin’s initial decline reflected that uncertainty, although its subsequent rebound showed that buyers were willing to absorb selling near a significant support area. The volatile trading coincided with approximately $317 million in cryptocurrency derivatives liquidations over 24 hours, according to CoinGlass data. Long positions accounted for $168 million, indicating that traders betting on higher prices suffered most of the losses. Short positions recorded another $149 million in liquidations as prices fluctuated. Bitcoin liquidations totalled about $87 million, with longs accounting for 40% of that amount. The figures highlight the pressure on leveraged bullish positions during the selloff. Forced closures can amplify price moves when falling markets leave traders unable to meet collateral requirements. Ethereum and major altcoins rebound from weekly lows Selling spread across major cryptocurrencies before prices recovered. Ethereum registered approximately $73 million in liquidations, the largest total among the altcoins. ETH briefly fell to $2,324 before rebounding. BNB, XRP and Solana also retreated, touching approximately $712, $1.29 and $101. The broad decline and rebound illustrate how macroeconomic uncertainty can affect the wider crypto market, while the subsequent rebounds added further volatility for traders positioned on either side. Bitcoin technical forecast: Bulls defend the $80,000 support zone Despite briefly trading below $80,000, Bitcoin recovered the support zone between $80,000 and $81,500. The substantial buy orders around this area on Binance’s spot order book pushed Bitcoin’s price higher, with the leading cryptocurrency now trading around $82,000. The zone also overlaps with the estimated acquisition cost of Bitcoin held by US spot exchange-traded funds. That ETF cost basis stands near $81,500. Bitcoin’s recovery above it restored the price to a level higher than the funds’ estimated average acquisition price. However, the brief rebound does not eliminate downside risk. A sustained break beneath the support zone could expose a cluster of leveraged positions to liquidation and intensify selling. Below $80,000, the True Market Mean near $78,000 provides the next onchain reference identified in the analysis. For now, Bitcoin’s recovery to $82,000 leaves buyers defending an important area as markets assess the implications of consecutive inflation surprises. The post Why Bitcoin rebounded above $82,000 after crashing below $80,000 appeared first on Invezz