Bitcoin Faces Critical Resistance Ahead of Key Economic Data
Bitcoin started October near $85,360 after weak U.S. employment data reduced expectations of further Federal Reserve rate hikes. The cryptocurrency briefly climbed close to $87,000 before retreating below $86,000 during Monday's Asian trading session. This pullback left Bitcoin about $500 short of its eight-month high, keeping the late-September resistance zone in focus.
The September jobs report showed only 29,000 new payrolls, which eased pressure on the Fed to raise rates at its upcoming October 27-28 meeting. Treasury yields dipped slightly, while global equity markets extended their gains. Despite giving back about $1,000 from its Sunday peak, Bitcoin remained 1.3% higher over 24 hours.
Bitcoin's rally gathered momentum on Sunday, reaching nearly $86,950 before slipping back below $86,000. A similar pattern occurred last Wednesday, when Bitcoin climbed to about $85,500 after softer U.S. inflation data but then surrendered those gains. A daily close above $87,000 would signal that buyers are challenging the late-September high.
The upcoming October 14 CPI report and October 29 PCE inflation report will shape expectations for interest rates. These macroeconomic factors, along with ETF fund flows, will determine whether Bitcoin can clear the $87,400 resistance and target $90,000 or face a retreat toward $76,000-$80,000.