Stories
Bitcoin Dips Amid Fed Fears, High Oil, and US Yields; Key Support Levels Eyed
- •Bitcoin fell 0.12 percent to $83,158, down 2.76 percent over a week, influenced by higher US Treasury yields, elevated oil prices, and expectations of a Fed rate hike.
- •Inflationary pressures from Brent crude at $107 per barrel kept the Dollar Index high, with markets pricing in a 70 percent chance of an October Fed rate hike.
- •US spot Bitcoin ETFs saw $23.8 million in net outflows, while Ethereum ETFs recorded a modest $1.7 million net inflow, with BlackRock leading demand.
- •Analysts note that while resilient growth supports crypto demand, higher yields, oil prices, and tighter policy limit near-term momentum.
- •Key support for BTC is at $82K–$82.5K, with resistance at $83.8K–$85K; investors are advised to watch the $82,000-$83,000 support zone closely.
Key Questions Answered
Bitcoin fell to around $83,158 as higher US Treasury yields, elevated oil prices at $107 per barrel for Brent crude, and expectations of an upcoming Fed rate hike weighed on the crypto markets. Additionally, profit-taking following Bitcoin's recent run above $87,000 and muted ETF inflows contributed to the downward momentum.
According to Delta Exchange Research Analyst Riya Sehgal, Bitcoin support is situated between $82,000 and $82,500, with a potential break exposing the $80,000 to $80,600 range. Meanwhile, resistance levels are identified between $83,800 and $85,000.
Investors are shifting their focus to the U.S. JOLTS data, PCE inflation figures on Wednesday, and the September jobs report on Friday. Stronger labor data could drive up Federal Reserve rate-hike expectations and exert more pressure on crypto, whereas weaker data could help ease yields and support risk assets.
