Bitcoin Price Holds Above $80K as Traders Watch Inflation Data and Market Resistance

Bitcoin (BTC) is trading above $80,000 again after recovering from last week’s sharp decline, but analysts say the cryptocurrency market still lacks the strength needed for a decisive breakout. While BTC has gained more than 13% over the past month, market data suggests the rally remains fragile as traders continue to hedge against macroeconomic uncertainty.

According to CoinDesk market data, bitcoin briefly dropped below $80,000 after the latest U.S. jobs report came in stronger than expected. Strong employment numbers reduce the likelihood of immediate Federal Reserve rate cuts, which pressured risk assets, including crypto. BTC fell from around $82,000 to nearly $79,700 before recovering over the weekend.

Market makers and blockchain analysts believe bitcoin now has a stronger support base than it did several weeks ago. Singapore-based trading firm Enflux noted that continued spot Bitcoin ETF inflows and declining exchange reserves are helping create a structural floor for BTC prices. Lower exchange reserves often indicate investors are holding rather than selling, a bullish signal for the long term.

Glassnode data also showed growing buying activity in both spot and perpetual futures markets. Spot cumulative volume delta (CVD), which measures aggressive buying versus selling, climbed significantly, indicating traders are increasingly willing to buy bitcoin at current prices. Perpetual futures CVD surged even more sharply, highlighting growing bullish sentiment among leveraged traders.

However, analysts warn that the rally is still heavily influenced by leveraged futures positions rather than purely organic spot demand. Funding rates and hedging activity suggest many traders remain cautious despite bitcoin’s recovery. This raises the risk of volatility if upcoming U.S. inflation data disappoints investors.

Enflux also pointed to rising prices in the luxury watch market as a sign that wealthy investors are slowly returning to risk assets. Still, bitcoin’s inability to cleanly break above major resistance levels suggests the crypto market has not yet fully regained investor confidence.

For now, bitcoin appears stuck between improving market structure and lingering macroeconomic uncertainty, leaving traders focused on inflation trends and Federal Reserve policy for the next major move in BTC prices.