Bitcoin Holds Above $82,500 Support as Traders Await Key US Inflation Data
Bitcoin (BITSTAMP:BTCUSD) held key support at $82,500 to start the third week of October, avoiding a slide back into its earlier 2026 trading range between $60,000 and $80,000. Despite a 3.2% weekly drop that left the cryptocurrency trading near $83,310, buyers stepped in above the critical price threshold during Sunday's weekly candle close.
The digital asset's resilience comes as investors focus on upcoming US macroeconomic releases. Lower inflation figures generally favor cryptocurrencies and stocks by lowering the probability of interest rate hikes from the Federal Reserve. Markets currently see a minor 18.8% probability of a rate increase at the Oct. 28 policy meeting, though odds rise to 70.6% for a quarter-point hike in December.
Traders are looking ahead to Wednesday's Consumer Price Index print, which is expected to show annual inflation rising to 3.7% due to elevated fuel costs, followed by Thursday's Producer Price Index report. Investors will also monitor Federal Reserve Chair Kevin Warsh's scheduled discussion with International Monetary Fund Managing Director Kristalina Georgieva on Friday for further hints on monetary policy.
Key points
- Bitcoin preserved crucial weekly support at $82,500, preventing a fall back into its prior $60,000 to $80,000 price channel.
- US Consumer Price Index data is expected on Wednesday, with consensus estimates predicting year-over-year inflation will rise to 3.7%.
- Markets price in an 18.8% probability of a Federal Reserve rate hike at the Oct. 28 meeting, and a 70.6% chance of a hike in December.
- Thursday's Producer Price Index release and a Friday appearance by Fed Chair Kevin Warsh will provide additional market direction.
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How we writeDisclaimerQuestions and answers
What is the key support level for Bitcoin this week?
Bitcoin defended crucial weekly support at $82,500. Holding above this level helped the asset avoid returning to its previous trading range between $60,000 and $80,000.
When will US inflation data be released?
The September Consumer Price Index (CPI) report is set for release on Wednesday, followed by the Producer Price Index (PPI) report on Thursday.
What are the market expectations for Federal Reserve rate decisions?
Futures markets currently price in an 18.8% chance of a rate hike at the Oct. 28 Federal Reserve meeting and a 70.6% chance of a 25 basis point hike in December.