Bitcoin recovered from an early-week sell-off on Tuesday, climbing back above $83,000 after briefly falling to $80,953.41. The move left the cryptocurrency up 2.24% at $83,591.79, according to Decrypt, although market sentiment remains more cautious than during August’s rally.
Sentiment cools without turning bearish
Bitcoin’s latest decline followed a difficult week for traders, who moved away from the optimistic “Uptober” narrative after the cryptocurrency gave back half of its September gains. The Crypto Fear and Greed Index, which combines indicators including momentum, volatility, options positioning and social activity, is now in neutral territory at 55. That is well below its “extreme greed” reading of 82 on Aug. 26, but it does not indicate widespread panic.
Bitcoin exchange-traded funds have recorded net outflows of $386.3 million in October. When funds face redemptions, they may need to sell Bitcoin they hold, creating an additional source of market pressure. The next major test is Wednesday’s Consumer Price Index report. The report is expected to show annual inflation rising to 3.6% from 3.4%. A hotter-than-expected reading could increase expectations for higher interest rates, which would likely weigh on Bitcoin. The Federal Reserve is scheduled to meet on Oct. 27-28.
Key technical levels come into focus
Tuesday’s low remained above the $80,365.12 swing low that began Bitcoin’s latest rebound. Technical traders often view a higher low as a constructive sign in an uptrend. Bitcoin also regained the Fibonacci “golden zone,” identified in the source material as the area between $81,847.57 and $82,305.50, where buyers can sometimes emerge during a pullback.
Several other indicators provide a mixed picture. The Average Directional Index is 29.9, above the 25 level commonly used to indicate a trend, although it has declined from 42.8 on Oct. 7. The 50-day exponential moving average remains above the 200-day average, a formation often described by traders as a golden cross. Meanwhile, the Relative Strength Index is 53.4, only modestly above the level separating bullish and bearish momentum.
The Squeeze Momentum Indicator has remained active for seven sessions. Its reading of -0.52 points slightly bearish while also indicating compressed volatility. A daily close above $84,245.88 could put $86,644.19 and then $87,422.70 in view. A move below $81,603.02 would weaken the setup and expose levels around $80,000 and potentially $77,500.
Moneyiar market picture
Moneyiar data at 20:44 on Oct. 13 showed Bitcoin at $83221.604056005, up 0.25% over 24 hours but down 2.81% over seven days. AKEDO was $0.0251374939, up 4.46% in 24 hours and down 13.96% over seven days. Ore stood at $122.3743476213, gaining 2.69% daily and 4.01% weekly. The Index was $0.035758599, down 14.44% daily but up 31.84% over seven days.
Prediction-market traders on Myriad assign Bitcoin a 54% chance of reaching $80,000 in October and a 45% chance of reaching $87,500. Those figures suggest expectations have improved slightly from Monday, but traders remain focused on inflation, Treasury yields, oil and Iran-related headlines, as well as daily ETF flows.
