Bitcoin (BTC) hit a fresh October low after Wall Street opened on October 11, with one analyst praising the cryptocurrency bear market as entering its “final stages.”
Bitcoin Trader Highlights Importance of $26,800
Data comes from Cointelegraph Markets Pro and trading view Showing further weakness in Bitcoin price, bulls lost support at $27,000.
As of this writing, the price of the largest cryptocurrency has risen to $26,600 as downside momentum builds.
The move follows the release of U.S. inflation data. Producer Price Index (PPI)September’s data beat expectations – 2.2% growth compared with 1.6% annual growth. That heightened concerns about persistent inflationary pressures in the United States, with the dollar strengthening and risk assets falling.
“The Producer Price Index (PPI) is hotter than expected, which means that the US Dollar Index (DXY) may rebound upwards, and Bitcoin may see some correction. Still monitoring the lower limit of potential entry points,” Founder of MN Trading Michaël van de Poppe, CEO commented on X.
Bitcoin has lost $1,000 since completing a “death cross” on the daily chart earlier this week, thus hitting its lowest level since September 29. In doing so, it wiped out the previous October gains and canceled this month’s status: a classic “Uptober.”
“The final stages of the cryptocurrency bear market”, van de Poppe continue.
“We could have reversed in October and entered an uptrend in November (retesting the $26,800 area), or we could have reversed in late December and ushered in a pre-halving and ETF rally. Better days are coming for Bitcoin. “
Following this action, prominent trader Skew also highlighted $26,800 as a key level within the current range.
“Will wait for a close but so far it looks like rejection, which in my opinion is also the last area for bulls to take action ~$26.8K,” he said Tell X subscribers about the four-hour chart.
Meanwhile, another trader, Daan Crypto Trades, noted that open interest hit a multi-month high, with high levels triggering volatility in the first week of the month.
#bitcoin Open interest levels are at their highest since the August sell-off.
Usually this is met by some sort of squeeze from this point on. pic.twitter.com/IZuhVbt6lt
— Daan Crypto Trades (@DaanCrypto) October 11, 2023
Binance order book shows lower bids
Before PPI is released, monitor resource material indicators show The BTC/USD order book of Binance, the world’s largest exchange, lacks bid support. This centers around $26,650.
Related: War, CPI, and $28,000 BTC Price – 5 Things to Know About Bitcoin This Week
“This morning’s year-over-year core PPI report shows that the metric has been trending upward since July,” co-founder Keith Alan wrote in subsequent comments.
Allen Add to In the absence of relief from risk assets, interest rates are likely to remain at current levels, possibly for longer than previously expected.
“I’m not an economist, but I interpret that as higher(er) lasting longer,” he concluded.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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