TradingKey - Bitcoin strongly reclaims the $80,000 threshold with its bullish structure intact, still poised to rise to $87,000.
On October 16, Bitcoin (BTC) demonstrated remarkable institutional buy-the-dip resilience after back-to-back higher-than-expected U.S. September CPI and PPI inflation readings triggered a series of liquidations, strongly reclaiming the 80,000 mark and returning above 82,000, temporarily trading at $82,105.
From October 14 to October 15, U.S. CPI and PPI data released sequentially both significantly exceeded market expectations, bolstering expectations for a Federal Reserve rate hike in October. Risk assets such as cryptocurrencies and tech stocks generally took a hit. Bitcoin broke through key support levels of $82,000 and $80,000 in succession, touching a low of $79,789, which led to the concentrated liquidation of billions of dollars in highly leveraged long positions across the network.
As open interest dropped sharply, market holdings quickly shifted from highly leveraged speculators to long-term spot holders, resulting in a structural exhaustion of selling pressure. In addition, the market has fully priced in a cautious hold or minor adjustment at the October FOMC meeting, while safe-haven capital has begun flowing back into Bitcoin, which possesses inflation-hedging properties and high elasticity.
Currently, the first critical breakout point facing Bitcoin is $83,000, which served as the base of the bull-bear range prior to the release of the inflation data. If the daily candlestick can close above $83,000 with a solid bullish body, it will directly eliminate the downside shadow caused by this round of CPI/PPI shocks and restore bullish confidence.
Bitcoin price chart, Source: TradingView
If BTC breaks out above $83,000 on heavy volume, the upside channel will open directly, paving the way for a potential push into the region above the recent high of $87,000 and initiating a new round of price discovery toward the $90,000 milestone. Although Bitcoin's rally this time is relatively strong, a technical pullback cannot be ruled out. However, as long as the daily closing price of BTC stays above the key round number of $80,000, the overall monthly-level bull market structure remains intact.