Bitcoin traded near $81,392 on Oct. 20 as sellers pressed on the $81,100 support level. Bitfire Research points to weekly ETF outflows and a possible December Fed rate hike as pressure on the recovery.
Bitcoin traded near $81,392 on Oct. 20, with $81,100 emerging as its immediate technical support. The immediate contest centers on whether buyers defend $81,100 or allow another retreat toward $80,000.
The cryptocurrency slipped toward the bottom of its $81,155 to $82,667 intraday range. Technical indicators favor sellers, according to the source.
Charts show lower highs below $87,374
On the one-hour chart, bitcoin set lower highs after reaching $83,062 and struggled to hold traction around $81,450. A move above $82,000 with stronger volume would improve the short-term outlook, but another rejection would leave $81,100 exposed.
The four-hour chart looks neutral to bearish, with repeated failures around $82,500 to $83,000. A sustained breakdown beneath $81,000 would bring $80,500 into focus, followed by the $79,694 support area.
Meanwhile, the daily chart shows bitcoin consolidating beneath its previous $87,374 high. A decisive break below $80,000 would strengthen the bearish argument.
Bitfire Research flags ETF outflows and Fed risk
Bitfire Research sees mounting macroeconomic pressure on the recovery. The firm points to September's 3.7% annual increase in consumer prices and a roughly 90% probability of a December Federal Reserve rate hike.
U.S. spot bitcoin ETFs also recorded approximately $228 million in weekly net outflows, while a negative Coinbase premium suggests weakening domestic demand.
Bitfire identifies $82,500 as a significant resistance barrier, followed by the 20-day Bollinger Bands midpoint near $83,300. The researchers place critical downside support around $79,800.
According to Bitfire Research, bitcoin may retest lower-band support: "Unless bulls reclaim the mid-band quickly, bitcoin may retest lower-band support in the short term".
With the Federal Reserve's Oct. 28 policy decision approaching, the firm sees limited room for complacency.
Source: Bitcoin News
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