{"id":31431,"date":"2026-10-16T22:51:10","date_gmt":"2026-10-16T22:51:10","guid":{"rendered":"https:\/\/pettysackingforum.com\/?p=31431"},"modified":"2026-10-16T22:51:10","modified_gmt":"2026-10-16T22:51:10","slug":"bitcoin-breaks-key-support-after-hot-cpi-is-a-crash-toward-78k-now-in-play","status":"publish","type":"post","link":"https:\/\/pettysackingforum.com\/?p=31431","title":{"rendered":"Bitcoin breaks key support after hot CPI: is a crash toward $78K now in play?"},"content":{"rendered":"
<\/div>\n

Bitcoin came under renewed selling pressure over the last 24 hours after hotter-than-expected US inflation data unsettled financial markets and increased expectations of further Federal Reserve tightening.<\/p>\n

The cryptocurrency dropped more than 1% shortly after the Consumer Price Index release, as traders reassessed the outlook for interest rates.<\/p>\n

The headline inflation surged to 3.7% year-over-year from 3.4%, while consumer prices increased 0.6% on a monthly basis. A 9.1% jump in gasoline prices accounted for much of the monthly increase.<\/p>\n

\n
https:\/\/twitter.com\/WatcherGuru\/status\/2110347430307024924 <\/div>\n<\/figure>\n

Core inflation, which strips out volatile food and energy costs, stood at 2.6% annually. The figures intensified concerns that inflation could remain elevated, limiting the Federal Reserve\u2019s flexibility to ease monetary policy.<\/p>\n

For Bitcoin, the immediate market reaction added macroeconomic pressure to an already fragile technical outlook.<\/p>\n

Fed expectations shift as Treasury yields and dollar strengthen<\/h2>\n

The inflation release prompted a sharp adjustment in interest rate expectations. <\/p>\n

CME FedWatch data<\/a> shows the probability of a 25-basis-point increase at the October 28 Federal Open Market Committee meeting rose above 50%, up from about 20% earlier in the week.<\/p>\n

Those probabilities reflect market pricing at the time of the report and can change as new economic information emerges.<\/p>\n

Expectations for interest rate cuts before year-end also weakened. The next policy decision consequently became more closely balanced between leaving rates unchanged and delivering another increase.<\/p>\n

Meanwhile, US 10-year Treasury yields firmed and the US Dollar Index strengthened. Higher yields can make interest-bearing assets more attractive, while a stronger dollar can weigh on demand for risk assets, including cryptocurrencies.<\/p>\n

Together, these developments created a more difficult backdrop for Bitcoin buyers attempting to establish a recovery.<\/p>\n

Bitcoin\u2019s bear flag pattern signals further downside risk<\/h2>\n

Beyond the macroeconomic pressure, Bitcoin\u2019s four-hour BTC\/USDT perpetual chart showed a potential bearish continuation pattern.<\/p>\n

The setup followed a decline from approximately $86,000 to $81,000. Bitcoin subsequently consolidated inside a narrow, upward-sloping channel, forming what is known as a bear flag.<\/p>\n

BTC has broken below the channel\u2019s lower boundary near $82,371. Bitcoin is also trading below its 20-period exponential moving average at $83,196 and its 50-period EMA at $83,384. <\/p>\n

These moving averages formed an overhead resistance zone that buyers needed to overcome to improve short-term momentum.<\/p>\n

Repeated rejection around that area would leave the bearish structure intact and increase attention on lower support levels.<\/p>\n

The bears pushed below the support formed at the four-hour 200-period EMA near $82,046. A daily candle close below this support has exposed the psychologically important $80,000 threshold to a potential test.<\/p>\n

Momentum indicators offered limited reassurance for buyers. The 14-period Relative Strength Index stood at 43 and is pointing lower, indicating weak momentum without an oversold reading.<\/p>\n

Using the bear flag\u2019s measured-move method, Bitcoin could continue its decline, with a downside target near $78,218. <\/p>\n

Buyers would first need to recover the resistance area around $83,196\u2013$83,384 to challenge the immediate bearish momentum.<\/p>\n

<\/figure>\n

A move above approximately $83,400, followed by a push through $84,000, would weaken the bear flag setup. <\/p>\n

A daily close above $84,000 would provide stronger evidence of a recovery and shift attention toward the earlier local peak near $86,000.<\/p>\n

Until those levels are reclaimed, Bitcoin remains exposed to further downside if inflation concerns continue to weigh on broader markets.<\/p>\n

The post Bitcoin breaks key support after hot CPI: is a crash toward $78K now in play?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin came under renewed selling pressure over the last 24 hours after hotter-than-expected US inflation data unsettled financial markets and increased expectations of further Federal Reserve tightening. The cryptocurrency dropped more than 1% shortly after the Consumer Price Index release, as traders reassessed the outlook for interest rates. The headline inflation surged to 3.7% year-over-year […]<\/p>\n","protected":false},"author":1,"featured_media":31432,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[],"class_list":["post-31431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news"],"_links":{"self":[{"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/posts\/31431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31431"}],"version-history":[{"count":0,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/posts\/31431\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/media\/31432"}],"wp:attachment":[{"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}