Bitcoin traders stress importance of $26,800
Bitcoin (BTC) hit new October lows after the Oct. 11 Wall Street open as one analyst hailed the "final stage" of the cryptocurrency bear market. Data from Cointelegraph Markets Pro and TradingView showed further BTC price weakness emerging, costing bulls $27,000 support. At the time of writing, the largest cryptocurrency was headed toward $26,600 as downside gained momentum.
Inflation data adds to Bitcoin's woes
The move followed United States inflation data in the form of the Producer Price Index (PPI), the September print for which came in above expectations — 2.2% versus 1.6% year-on-year (YoY). This added to concerns about lingering U.S. inflation pressures, with dollar strength up and risk assets down.
Analysts predict bullish future for Bitcoin
"PPI coming in hotter than expected, meaning that the $DXY will probably have a bounce upwards and Bitcoin some corrections south. Still monitoring the lower boundaries here for potential entries," said Michaël van de Poppe, founder and CEO of MN Trading. Having already lost $1,000 since a "death cross" completed on the daily chart at the start of the week, Bitcoin hit its lowest levels since Sep. 29. Van de Poppe believes that good times are ahead for Bitcoin, with a potential uptrend in November or a reversal at the end of December.
Key level to watch: $26,800
Following the action, popular trader Skew highlighted $26,800 as a crucial level within the current range. He believes that this is the last area for bulls to make a move. Additionally, fellow trader Daan Crypto Trades noted multi-month highs in open interest, suggesting a potential squeeze point and increased volatility.
Binance order book shows thin bids
Prior to the PPI release, monitoring resource Material Indicators showed a lack of bid support on the BTC/USD order book on largest global exchange Binance. This lack of support was centered around $26,650.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
