Bitcoin Regains $81,300 Support as CPI and Spot Demand Set Next Test

Bitcoin (BTC) has recovered the $81,300 support level after falling from an Oct. 2 high of $87,197 to $80,347, putting U.S. inflation data and spot buying at the center of the next market test.

About $1.18 billion in leveraged positions were liquidated Oct. 8, reducing the amount of leverage in the market. With fewer leveraged trades in place, further price action is likely to depend more heavily on direct spot demand.

Bitcoin exchange-traded fund investors have an average cost basis of about $84,340. That level could create short-term selling pressure if BTC rebounds toward it.

The market is also focused on core consumer-price inflation. A reading below expectations could lower yields and ease pressure on interest rates.

A move above $84,500 would bring $87,722 back into focus. A break below $81,300 could send Bitcoin toward about $77,400.