Bitcoin retreated to around $80,000 on Thursday, touching an intraday low near $79,700, as traders weighed the Federal Reserve's latest policy stance and the possibility of further monetary tightening.
The cryptocurrency had climbed to $81,713 on Wednesday but failed to sustain momentum, giving back gains in the following hours. During the Asian session, BTC fell from roughly $81,300 to the day's low, marking a decline of nearly 2% and partially reversing a two-day rebound.
The recovery had not produced a decisive break above $82,000, leaving the psychological $80,000 level as the focal point for short-term trading.
Fed holds rates but signals persistent inflation concerns
The Federal Reserve kept its benchmark interest rate range unchanged at 3.75%–4.00% on Wednesday, as widely expected. However, the accompanying statement offered little comfort to those hoping for easier policy. Officials reiterated that inflation "remains elevated" and upgraded their description of economic activity from "solid" to "strong."
The decision passed by a 10–2 vote, with both dissenting members favoring an immediate 25-basis-point increase. That outcome reinforced expectations that another hike could occur in December. According to the CME FedWatch tool, traders assigned a 78.4% probability to a rate increase at that meeting.
The yield on the 10-year US Treasury note briefly moved back above 5% following the decision. Higher yields can make interest-bearing assets more attractive relative to investments like Bitcoin, which does not generate a contractual yield. They can also tighten financial conditions and dampen demand for speculative assets.
Against this backdrop, Bitcoin struggled to extend its recovery despite repeatedly attracting buyers near $80,000 in recent sessions. Since retreating from above $84,000 on October 22, BTC has tested the $80,000 area several times. Intraday dips below that threshold on October 24, 26, and 27 were met with buying support, but none produced a lasting upside breakout.
Bitcoin technical outlook: support at $79,000, then $75,000
The BTC/USD daily chart continued to consolidate between $82,000 and $80,000. A prolonged stay below $80,000 would keep attention on recent lows around $79,000. If that support gives way, the next downside area is approximately $75,000. Such a move would deepen the correction and indicate that recent buying interest had failed to stabilize the market.
On the upside, Bitcoin first needs to reclaim $80,000 and then overcome $82,000. A sustained break above that resistance would improve the recovery outlook and could bring $87,000 back into focus.
Technical indicators continue to favor the sellers. The Relative Strength Index (RSI) at 44 shows that buyers are struggling to regain control, while the Stochastic reading of 21 is also in negative territory.
PCE inflation report becomes next market test
Attention now turns to September's US Personal Consumption Expenditures inflation report, scheduled for release later today. The figures could reshape expectations for the Fed's December decision. Stronger inflation would risk reinforcing rate-hike bets, while softer data could ease some pressure on yields and risk assets.
For Bitcoin, the response around $80,000 will help show whether buyers can rebuild momentum or whether the market remains vulnerable to another test of recent lows.
This article is for informational purposes only and does not constitute financial advice.
