Bitcoin Stalls Below $86K as Inflation Data Affects Market Dynamics
- Bitcoin (BTC) held steady above $83,000 after a recent rally peaked at $85,600.
- The US PCE inflation rate was reported at 3.4% year-on-year, lower than the anticipated 3.7%.
- BTC-denominated open interest fell nearly 20%, despite Bitcoin’s price increasing by 35% since August.
- Bitcoin began Q4 at around $83,550, marking a significant third-quarter gain of 42.7%, its best since 2017.
- A liquidation cluster worth approximately $60 million emerged near the critical support level of $82,500.
Bitcoin’s price action reflects a complex interplay with recent US inflation data and market dynamics, particularly with declining open interest indicating reduced leverage risks for potential liquidations.
As Bitcoin remains below $86K following the PCE report, it is crucial to monitor support levels like $82,500 and resistance around $85,000 for future price movements. (Source)
