Bitcoin fell about 1% over the past 24 hours, extending a pullback from the $85,000 area as traders took profits after the cryptocurrency’s recent advance. Despite the decline, continued demand for U.S. spot Bitcoin exchange-traded funds is helping support the broader recovery.
Data from SoSoValue showed that the funds recorded net inflows during eight consecutive trading sessions. Around $3 billion flowed into the products over that period, bringing the total close to the amount attracted during August.
Inflation data could shape the next move
Bitcoin’s near-term direction may depend heavily on upcoming U.S. economic releases. Analysts expect the August Personal Consumption Expenditures price index to rise 0.4% month over month, compared with 0.2% in the previous month. They also forecast second-quarter gross domestic product growth of 1.5%, following a 2% reading for the first quarter.
A stronger-than-expected inflation figure could reinforce expectations for tighter monetary policy. Higher interest rates generally create more competition for cryptocurrencies by making interest-bearing assets more attractive and reducing support for speculative investments.
Market pricing puts the probability of an October Federal Reserve rate increase at 68%, according to FedWatch data. That figure reflects a market-implied estimate rather than a confirmed policy decision. A softer inflation report could reduce pressure on Bitcoin, although the market reaction will also depend on the growth data and how investors interpret the Federal Reserve’s policy outlook.
Short-term chart remains unsettled
Institutional buying provides a counterweight to the macroeconomic risks, but ETF inflows do not eliminate selling pressure elsewhere in the market. Profit-taking by existing holders, shifts in leveraged positions and reactions to economic data could still interrupt Bitcoin’s recovery.
Momentum indicators offer a mixed picture. The Relative Strength Index remains near 60, suggesting that broader momentum is still positive, while sentiment readings remain in the “Greed” zone. On the four-hour chart, however, Bitcoin has formed a series of lower highs and lower lows, indicating that sellers continue to influence short-term price action.
The $80,000-$82,000 region is the key support zone to watch. Holding that area could provide a base for another attempt at $85,000. A sustained break above that resistance level could open a path toward $90,000, with $100,000 remaining a longer-term possibility if bullish momentum returns.
Those targets remain conditional. Bitcoin must first stabilize above support and overcome resistance, while the upcoming inflation and growth figures could determine whether buyers retain control of the recovery.
