Bitcoin (BTC) Is Boxed Between $80,000 Support and $87,500 Supply

Bitcoin (BTC) is boxed between support near $80,000 and an overhead supply zone from $86,500 to $87,500, with a Federal Reserve rate decision and an MSCI list of index removals among the next catalysts in focus.

A daily close below $80,000 would put ETF and corporate treasury holders at a loss on average. ETF inflows on Oct. 19 arrived amid thin trading, and volume had not followed the flows. A daily close above about $87,500, paired with renewed ETF inflows on rising volume, would show demand absorbing supply.

Bids on Binance’s spot order book near $80,000 had returned by Oct. 20, but were smaller than their peak. Buyers from six to 12 months ago had an average cost basis near $86,700. The main block of asks ranged from $86,500 to $87,500; separately, the two largest liquidation clusters were near $85,000 and $87,000.

Rising oil prices and yields, along with higher inflation expectations, are also among the near-term catalysts in focus. The Federal Reserve’s rate decision is scheduled for Wednesday, Oct. 28.

MSCI plans to publish its final list of index removals Nov. 11, with any changes taking effect at the close of trading Nov. 30. Strategy is among the companies that could be removed. An index removal would require index-tracking funds to sell the affected company’s shares, while the effect on Strategy’s Bitcoin buying remains uncertain.