Bitcoin prices are currently hovering around $85,500, having recovered by more than 40% from the lows seen in the first half of the year.
A recent shift in market expectations regarding the Federal Reserve’s (Fed) future monetary path served as a catalyst for the BTCUSD rebound. Weak US employment data for September reduced the odds of an October rate hike, underpinning riskier assets, including Bitcoin. Another significant pillar of support is the persistent demand from institutional investors: American spot BTC exchange-traded funds (ETFs) have recorded net capital inflows for the third consecutive week, reaching $241 million over the past seven days.
However, elevated US Treasury yields should not be overlooked. They are the primary obstacle in the cryptocurrency’s way up. Returns on 10-year bonds have recently settled near multi-year peaks above 5.3%, making debt assets far more appealing compared to riskier alternatives. A stronger dollar is another headwind for Bitcoin. Such an environment is typically unfavorable for BTCUSD.
From a technical standpoint, the overall outlook remains bullish. In late September, prices confidently broke through the $82,000 resistance level and consolidated above it. Now, the breached threshold is acting as important support. The nearest barrier lies between $87,000 and $87,500, where a previous local high was formed. A breakout and consolidation above this range could reinforce the uptrend and pave the way toward the next target at $90,000.
The final recommendation:
— Buy Bitcoin at the current price of $85,500, aiming for $90,000 within a few weeks.
— Place Stop Loss at $82,000 to manage risks if the BTCUSD pair moves against us.
This content is for informational purposes only and is not intended to be investing advice.
