Bitcoin Facing Short-Term Pressure But Key Support Holds
Bitcoin is facing renewed short-term pressure, with the cryptocurrency trading near $85,220 after a 0.84% drop over 24 hours. Despite this pullback, Bitcoin remains 2.81% higher over the past week. The four-hour structure for Bitcoin remains constructive, with the cryptocurrency trading above its rising longer-term exponential moving averages. However, it has slipped below the 20-period EMA near $85,373, signaling weaker short-term momentum following the recent rejection near $87,000.
Immediate resistance for Bitcoin sits around $85,400. A recovery above this region could bring $86,216 back into focus, with the recent high of $87,220 serving as a significant barrier. On the downside, the $84,300 to $84,700 region is crucial for support. Losing this zone could expose $83,600, with the 100-period EMA near $83,572 providing another defensive level. Momentum has entered oversold territory based on Stochastic RSI readings, which could encourage a rebound attempt from nearby support.
Derivatives leverage remains below previous extremes, with Bitcoin open interest standing near $54.74 billion after previously exceeding $80 billion. This decline indicates substantial leverage has left the market during earlier corrections. Spot flows provide a mixed picture, with Bitcoin recording a $17.82 million net outflow on October 6. Strive recently expanded its Bitcoin treasury by acquiring 2,000 Bitcoin between September 28 and October 2 at an average price of approximately $84,422 per coin. This purchase represents Strive’s largest buy since June and brings its holdings to 29,462 Bitcoin, valued near $2.5 billion at current market prices.
The technical outlook for Bitcoin remains at a key crossroads. Key levels to watch include immediate resistance at $85,400, followed by $86,216 and $87,220. Support levels include $84,739, $84,323, and $83,638. Holding the $84,300, $84,700 support zone could provide the foundation for another recovery. Failure to defend this region could deepen the correction toward $83,600, with the broader range floor near $82,631 becoming increasingly important.