Bitcoin Holds $86K as ETF Inflows and Fed Bets Support Rally

Bitcoin (BTC) maintained its position around $86,200 on Monday, marking the third straight week of gains since mid-September. The recent surge in price has been supported by strong institutional demand, with US-listed spot ETFs recording $241.09 million in inflows last week. This positive trend extends to a third consecutive week, signaling robust interest in Bitcoin among larger investors.

Market sentiment received an additional boost as traders reduced their bets on an October Federal Reserve rate hike following a weaker-than-expected jobs report. The US Nonfarm Payrolls (NFP) report showed a smaller-than-anticipated increase of 29,000 jobs in September, leading to a sharp decline in the probability of a Fed rate hike to just 18.3%, down from 70% the previous week. This shift in expectations has provided support for riskier assets like Bitcoin.

Technically, Bitcoin is showing strong bullish momentum, with key resistance levels identified at $87,599 and $89,832. The Relative Strength Index (RSI) on the weekly chart stands at 62, indicating strong upward pressure, while the Moving Average Convergence Divergence (MACD) further supports the bullish outlook. If Bitcoin can sustain its current trajectory, it may soon challenge the psychologically significant $90,000 mark.

On the downside, immediate support is found at $85,000, with deeper structural support levels around $79,000 and $75,000. As long as Bitcoin remains above $85,000, the technical outlook favors further gains. However, a daily close below this level could signal a potential correction toward the lower support zones.