Bitcoin is facing a major inflation test in the US - $73K is the level to watch.
Bitcoin is trading below $75,000 as the market prepares for the latest US inflation data.
The consumer price index in October is expected to show about 0.3% renewed inflation, while core inflation is expected to be around 0.2%+.
The timing is important as BTC has already fallen from above $87,000 in early October towards the mid-$70,000s. Demand for ETFs has weakened, leverage has been washed away and buyers are now protecting a critical technical area.
The main support level is around $73,000. A firm daily close below this area could increase downside pressure towards $70,000 and potentially $68,000.
On the upside, traders are eyeing the $80,000 area. A return and holding of this level will provide a much stronger signal that buyers are returning.
Important: Softer inflation may trigger a relief rally, but a sustainable Bitcoin recovery will likely require stronger spot demand, positive ETF flows, and improved liquidity.
For now, the short-term battle is simple.
Below $73K, the structure weakens.
Above $80k, bulls are starting to take back control.