BTC price downside follows renewed inflation fears amid a prediction that Bitcoin might only reverse upward in December.
hit new October lows after the Oct. 11 Wall Street open, as one analyst hailed the “final stage” of the cryptocurrency bear market.
At the time of writing, the largest cryptocurrency was headed toward $26,600 as downside gained momentum.
The move followed United States inflation data in the form of the Producer Price Index (PPI), the September print for which came in above expectations — 2.2% versus 1.6% year-on-year (YoY). This added to concerns about lingering U.S. inflation pressures, with dollar strength up and risk assets down.
“PPI coming in hotter than expected, meaning that the DXY will probably have a bounce upwards and Bitcoin some corrections south. Still monitoring the lower boundaries here for potential entries,” Michaël van de Poppe, founder and CEO of MN Trading, commented on X.
Having already lost $1,000 since a “death cross” completed on the daily chart at the start of the week, Bitcoin thus hit its lowest levels since Sept. 29. In so doing, it canceled out its previous October gains and removed the month’s status as a classic “Uptober.”
“The final stage of the bear market for Crypto,” van de Poppe continued.
“We might be reversing here already in October, going into an uptrend in November (retesting the $26,800 area) or we might be reversing at the end of December for a pre-halving & ETF rally. Good times are ahead for Bitcoin.”
Following the action, popular trader Skew also highlighted $26,800 as a crucial level within the current range.
“Will wait for close but looking like a rejection so far also last area for bulls to do something imo ~ $26.8K,” he told X subscribers about the four-hour chart.
At the same time, fellow trader Daan Crypto Trades noted multi-month highs in open interest, with high levels having triggered bouts of volatility that characterized the first week of the month.
Prior to the PPI release, monitoring resource Material Indicators showed a lack of bid support on the BTC/USD order book on the largest global exchange, Binance. This was clustered around $26,650.
“This morning’s YoY Core PPI report shows this metric trending upward since July,” co-funder Keith Alan wrote in part of his subsequent commentary.
Alan added that the interest rates may remain at current levels without relief for risk assets longer than was previously expected.
“I’m not an economist, but I interpret that as high(er) for longer,” he concluded.