Bitcoin Holds $80K Range Amid Low-Liquidity Volatility
Bitcoin's price dipped below $80,000 on Monday as a low-liquidity environment erased its weekend gains. The cryptocurrency was down nearly 2% at one point, but liquidity thickened throughout the day with concentrations at $80,500 and $78,800 providing nearby targets.
Despite the decline, analysts praised Bitcoin's resilience in holding a narrow range since mid-August. Ryan Lee, chief analyst at Bitget, noted that Bitcoin had absorbed last week's US macro volatility trigger, which was a surprise uptick in nonfarm payrolls numbers, without treating it as the only factor driving its price.
The market is waiting for clarity on the impact of upcoming inflation data on Thursday and Friday. QCP Capital suggested that traders required external catalysts to break the current volatility compression. The Federal Reserve's interest-rate hike expectations will likely be impacted by the inflation data, which could lead to a directional break in Bitcoin's price.