Key Highlights
- Bitcoin rises less than 1%, trading above $87,000.
- Markets await CPI data due in a few hours.
Bitcoin Trades Above $87,000
The cryptocurrency market has been volatile since earlier this week, with most coins and tokens showing losses. After falling below the psychological $90,000 level earlier in the week, Bitcoin is trading around $87,000.
This bearish move comes ahead of U.S. CPI data scheduled for release later today. November inflation is expected to show CPI rising to 3.1%, a figure that could influence Federal Reserve interest-rate decisions.
Because the October CPI was not released due to the government shutdown, November’s report will prompt investors to reassess inflationary pressures.
Some analysts are cautiously optimistic that Bitcoin may find temporary relief in the near term. Nick Forster, founder of on-chain options platform Derive.xyz, noted:
“BTC positioning remains clearly skewed to the downside. 30-day Bitcoin volatility has risen back to about 45%, while skew sits near -5%. Long-term skew also remains around -5%, indicating traders expect continued downside risk into Q1 and Q2, as previously dormant wallets keep pressuring spot price.”
Forster added that the probability of Bitcoin reaching $100,000 is roughly 30%, while the chance of reclaiming its all-time high is closer to 10%.
Bitcoin Could Face Deeper Correction Risk
The BTC/USD 4-hour chart shows a valid bearish structure, reflecting Bitcoin’s weak performance over recent days. This downtrend intensified after price was rejected at a descending trendline on Friday and has since dropped about 7%.
The leading cryptocurrency retested support near $85,000 on Wednesday but has bounced and is trading above $87,000 at time of writing.
If the correction continues and Bitcoin closes below the $85,569 support level, the decline could extend toward the psychological $80,000 mark.
The daily Relative Strength Index (RSI) sits at 41, below the neutral 50 level, signaling increasing bearish momentum. The MACD lines are also positioned in bearish territory.
Conversely, if BTC rebounds and closes above $85,569, the rally could extend toward resistance around $94,253.