Bitcoin Holds $80,000 Support; Break Above $87,000 Puts $94,000 in Focus

Bitcoin is holding support near $80,000, and a break above $87,000 could put $94,000 in focus as the next target, according to an analysis.

Crypto-focused media outlet BlockBeats reported on Oct. 12 that QCP Capital said Bitcoin has repeatedly tried and failed to break through $87,000, while support has been forming around $80,000.

QCP also said current market action appears more stable than it was a year after the crypto market recorded its largest-ever single-day liquidation on Oct. 11 last year. Prices have remained relatively steady despite large Bitcoin transfers by the U.S. government and weekend reports of an attack related to Ledger hardware.

The options market also shows some easing in defensive positioning. The premium of put options over call options has narrowed from typical levels, though the market is still pricing in the potential for large price swings.

QCP said a clear break above $87,000 could shift market attention to $94,000. It added that October has historically been a strong month for crypto markets, and options pricing suggests that seasonality could reemerge.

This week, U.S. inflation data and remarks related to the Federal Reserve are among the main variables. The U.S. consumer price index is due on Oct. 14, followed by the producer price index on Oct. 15, while Fed Chair Kevin Warsh is scheduled to speak at the International Monetary Fund and World Bank annual meetings on Oct. 16.

The market is currently pricing in about a 17% chance of an October rate increase, with expectations for rates to remain unchanged still dominant. QCP said inflation data or remarks from Chair Warsh that are more hawkish than expected could weigh on risk assets.

In the options market, open interest was concentrated in a bullish position combining Oct. 30 expiry call options with strike prices of $90,000, $95,000 and $100,000.