After surpassing $84,000 during the day, Bitcoin retreated back to $82,000, and the recent recovery has shifted attention to critical resistance levels.
At this point, the analysis firm QCP Capital states that Bitcoin has found strong support around $80,000 and the most critical resistance ahead is $87,000. The analyst also notes that if BTC experiences a sustained breakout above $87,000, the price could test $94,000.
Selling Pressure on Bitcoin is Decreasing!
In its latest assessment, QCP Capital noted that a year has passed since the historic liquidation wave in the cryptocurrency market on October 11 last year, and that Bitcoin has shown a more stable appearance in recent months.
At this point, the analytics firm noted that although recent news of the US government’s large-scale Bitcoin transfers and attacks on Ledger hardware wallets has created concern in the market, a sell-off on the expected scale has not materialized.
According to the company, although Bitcoin has struggled to break above the $87,000 level in recent days, it is holding onto its support around $80,000.
Bullish Expectations Dominate the Options Market!
The analysis firm also examined the options market and stated that options indicators suggest a decrease in investor demand for hedging against downside risks.
At this point, QCP Capital noted that there is significant open interest in bullish butterfly spreads expiring at the end of October, with strike prices of $90,000, $95,000, and $100,000. This suggests that expectations for Bitcoin reaching higher levels are prominent in the options market.
However, the company noted that implied volatility remains high, adding that uncertainty in price movements persists.
US Inflation Data Could Be Decisive!
The analysis company recently stated that there are significant developments this week that could also affect Bitcoin. According to QCP, the US Consumer Price Index (CPI) and Producer Price Index (PPI) data to be released this week, along with statements from Federal Reserve officials, are crucial for determining Bitcoin’s direction.
The renewed strengthening of interest rate hike expectations following the CPI and PPI data could put pressure on risky assets. Conversely, positive data and market conditions, along with sustained price action above $87,000, could bring the $94,000 target into focus.
*This is not investment advice.
Continue Reading: The Key to Bitcoin’s Rise Has Been Revealed! Analysis Company Explains the Level to Watch and Developments! Here Are the Details