Bitcoin Holds $86K as Institutional Demand and Easing Fed Hopes Fuel Rally
Bitcoin (BTC) is holding steady at the $86,000 mark as of Monday, following a three-week rally that has seen gains of over 12% since mid-September. The surge is being driven by strong institutional demand, particularly through BTC spot Exchange Traded Funds (ETFs), which have recorded inflows for three consecutive weeks. Last week alone, these ETFs saw inflows of $241.09 million, indicating robust interest from large investors. If this trend continues, BTC could extend its upward momentum.
The weaker-than-expected US Nonfarm Payrolls report, which showed a rise of only 29K in September, has also contributed to Bitcoin's rally. This data led market participants to reduce their bets on a Federal Reserve rate hike in October, with the probability of such a move dropping to 18.3% from 70% the previous week. Easing expectations for tighter monetary policy are providing a boost to risk assets like BTC.
Technically, Bitcoin is nearing the immediate resistance at the 50% retracement level at $87,599, followed by the 100-week Simple Moving Average (SMA) at $89,832. If BTC continues its upward trajectory, it could target the key psychological level of $90,000. The Relative Strength Index (RSI) on the weekly chart is around 62 and rising, while the Moving Average Convergence Divergence (MACD) shows rising green histogram bars, both supporting the bullish outlook.
On the downside, initial support is found at the $85,000 horizontal floor, followed by the 50-day SMA near $79,189. Below there, the 100-day and 200-day EMAs form a deeper structural demand zone around $75,000. As long as BTC holds above the $85,000 area, the technical structure favors further consolidation with a bullish bias.