Bitcoin Holds Near $86,000 as ETF Inflows and Weak Labor Data Boost Outlook

Bitcoin (BTC) is trading near $86,000 on October 5, recovering sharply from its September lows around $63,000-64,000. The daily chart shows improvement, with Bitcoin rising above its short-term and medium-term moving averages, and upward trends in lows and highs. The price is now testing a key resistance zone between $86,500 and $87,500, where selling pressure has previously been strong.

Weak U.S. labor data released on Friday has bolstered the bullish outlook for Bitcoin. The report showed only 29,000 jobs added in September, with unemployment rising to 4.2% and wage growth slowing. These figures reduced expectations of a Fed rate hike in October, easing pressure from Treasury yields and making risk assets like Bitcoin more appealing.

Spot BTC ETFs continue to drive demand, with significant inflows in late September and early October. After a $999 million inflow on September 21, subsequent days saw additional inflows, totaling $714.7 million, $346.9 million, and $190.7 million. Despite a brief outflow on September 30, inflows resumed strongly, reaching $189.9 million on October 2. This institutional demand supports the idea that the summer low may already have been reached.

Historical seasonality also favors a bullish scenario, as Bitcoin has ended October higher in ten of the last thirteen years, with an average return of 19%. However, caution remains necessary, as rallies toward $87,000 could still face selling pressure. A break above $86,400 would target $87,000-87,200, while a drop below $85,400 could see prices fall toward $84,200-84,000.