Bitcoin recovered to near $84,500 on Wednesday after a mid-October slide below $80,000. Oil prices and Treasury yields drove the October selloff, and technical indicators still point to caution.
Bitcoin traded near $84,500 on Wednesday, up 2.5% over 24 hours, as the crypto market bounced back from a mid-October slide that pushed it below $80,000. Ethereum climbed 2.5% to $2,504, while XRP led the large caps with a 4.1% gain to $1.37.
The Crypto Fear & Greed Index reads 55, which counts as neutral and is 3 points ahead of the previous day's readings. Decrypt suggests traders appear to have stopped panicking but are not yet chasing prices.
Oil and yields drove the October selloff
Brent crude traded near $108 on Wednesday after swinging between $97 and $112 a barrel this month. Meanwhile, U.S. consumer prices rose 3.7% in September from a year earlier, above the 3.6% economists expected.
Higher inflation pushes up Treasury yields, and a 5.09% 10-year yield pulls money away from stocks and crypto, according to Decrypt. Both eased slightly on Wednesday.
Bitcoin presses toward $87,422.70
On the daily chart, Bitcoin opened Wednesday at $82,928.80 and reached $84,726.28, after bouncing about 6% from this month's low near $79,711. It is now pressing toward resistance at $87,422.70, the September high.
The 50-day exponential moving average sits near $80,782, above the 200-day at about $76,084. The Relative Strength Index reads 58.5, so momentum is not yet stretched.
The bullish case needs a daily close above $84,726, which would open a target near $86,090. A daily close below $81,603 would expose the 50-day average at $80,782 and then the October low near $79,711.
Traders on Myriad, a prediction market built by Decrypt's parent company Dastan, put the odds of Bitcoin touching $87,500 in October at 31%, down from 45% on Oct. 12.
Source: Decrypt
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