Bitcoin Price Forecast: BTC extends rebound above $84,000 with US CPI data in focus
- Bitcoin extends its recovery on Wednesday, aiming for the $85,000 resistance.
- US-listed BTC spot ETFs recorded an inflow of $175.62 million on Tuesday, after a mild outflow on Monday.
- Market participants await September's US CPI data, which could provide fresh clues for the central bank's policy outlook.
Bitcoin (BTC) extends its recovery on Wednesday, aiming for the $85,000 resistance. The rebound comes amid a return of institutional demand, with BTC spot Exchange-Traded Funds (ETFs) recording inflows of over $175 million on Tuesday, while easing US Treasury yields and a softer US Dollar (USD) also offer some relief to risk assets.
Investors now await September's US Consumer Price Index (CPI) data on Wednesday, which could provide fresh clues for the Federal Reserve's (Fed) monetary policy path and the directional bias for the Crypto King.
ETF inflows return
SoSoValue data show that BTC spot ETFs recorded an inflow of $175.62 million on Tuesday after a mild outflow on Monday. If these inflows continue and intensify throughout the week, BTC could extend its ongoing recovery.
All eyes on US inflation figures
Bitcoin extends the rebound on Wednesday, nearly erasing Monday's losses, as it heads toward the $85,000 resistance zone. This recovery comes amid a slight fall in the US Dollar and 10-year Treasury yields, which peaked last week and have been sliding slightly so far this week.
Market participants now await September's US CPI data on Wednesday, followed by the Producer Price Index (PPI) on Thursday, which could provide fresh insight into inflationary pressures and influence expectations for the Fed's monetary policy path.
Moreover, Fed Chair Kevin Warsh's speech at the annual International Monetary Fund (IMF) and World Bank meetings in Bangkok on Friday will be scrutinized for cues about the future policy path.
Together, these outlooks will play a key role in driving the USD and Treasury yields and provide meaningful impetus to risk assets such as BTC.
Any signs of a dovish policy outlook could support risk appetite and provide a fresh tailwind for Bitcoin. However, stronger-than-expected inflation data or hawkish monetary policy signals could renew pressure on the Crypto King.
Bitcoin technical outlook: BTC heads toward the $85,000 resistance
Bitcoin price trades at $83,988 at the time of writing on Wednesday, maintaining a bullish bias as it holds well above the 50‑day, 100‑day and 200‑day Exponential Moving Averages (EMAs) at $80,389, $76,651 and $75,646 respectively.
The cluster of EMAs below reinforces underlying trend support, while the Relative Strength Index (RSI) at 54 on the daily chart suggests moderately positive but non‑extreme momentum. By contrast, the Moving Average Convergence Divergence (MACD) histogram remains negative, hinting that upside traction is constructive but not yet emphatic.
On the topside, immediate resistance is located at the horizontal barrier near $85,000, where prior supply could cap further gains.
On the downside, the first layer of support emerges at the 50‑day EMA at $80,389, with deeper cushions at the 100‑day EMA near $76,651 and the 200‑day EMA around $75,646.
A sustained move above $85,000 would open the path for another leg higher, while a daily close back below $80,389 would weaken the bullish structure and expose a corrective pullback toward the lower next EMA band.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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