Bitcoin climbed back above $82,000 on Friday, erasing an earlier slide that took the cryptocurrency below a closely watched support level. The rebound followed a brief dip to roughly $79,800 after the release of September's Producer Price Index, which came in hotter than forecast.
At the time of writing, BTC is trading near $82,000, up about 1.4% over the past 24 hours. The recovery pared losses triggered by the inflation data and signaled renewed buying interest around the $80,000 mark, though persistent price pressures continue to cloud the outlook for Federal Reserve policy and risk assets.
Producer inflation adds to rate concerns
September headline PPI rose 6.3% year-over-year, exceeding the 5.3% consensus estimate, according to the report. That reading marked the second-highest level since November 2022. Core producer inflation also surpassed expectations, climbing 5% annually versus the 4.4% forecast.
These figures followed Wednesday's Consumer Price Index report, which showed annual headline inflation at 3.7% and core inflation at 2.6%, both above projections. Together, the releases reinforced worries that inflation remains sticky, potentially increasing pressure on the Federal Reserve to maintain restrictive policy or consider further tightening.
Bitcoin's initial decline reflected that uncertainty, but its subsequent rebound showed that buyers were willing to absorb selling near a significant support area. The volatile trading coincided with approximately $317 million in cryptocurrency derivatives liquidations over 24 hours, according to CoinGlass data.
Long positions accounted for $168 million of those liquidations, indicating that traders betting on higher prices suffered most of the losses. Short positions recorded another $149 million in liquidations as prices fluctuated. Bitcoin liquidations totaled about $87 million, with longs representing 40% of that amount.
These figures highlight the pressure on leveraged bullish positions during the selloff. Forced closures can amplify price moves when falling markets leave traders unable to meet collateral requirements.
Ethereum and major altcoins rebound from weekly lows
Selling spread across major cryptocurrencies before prices recovered. Ethereum registered approximately $73 million in liquidations, the largest total among altcoins, with ETH briefly falling to $2,324 before rebounding. BNB, XRP, and Solana also retreated, touching approximately $712, $1.29, and $101 respectively.
The broad decline and rebound illustrate how macroeconomic uncertainty can affect the wider crypto market, while the subsequent rebounds added further volatility for traders positioned on either side.
Bitcoin technical forecast: Bulls defend the $80,000 support zone
Despite briefly trading below $80,000, Bitcoin recovered the support zone between $80,000 and $81,500. Substantial buy orders around this area on Binance's spot order book pushed the price higher, with the leading cryptocurrency now trading around $82,000.
The zone also overlaps with the estimated acquisition cost of Bitcoin held by US spot exchange-traded funds, which stands near $81,500. Bitcoin's recovery above it restored the price to a level higher than the funds' estimated average acquisition price.
However, the brief rebound does not eliminate downside risk. A sustained break beneath the support zone could expose a cluster of leveraged positions to liquidation and intensify selling. Below $80,000, the True Market Mean near $78,000 provides the next onchain reference identified in the analysis.
For now, Bitcoin's recovery to $82,000 leaves buyers defending an important area as markets assess the implications of consecutive inflation surprises.
This article is for informational purposes only and does not constitute financial advice.
