Bitcoin slips below $84,000 ahead of FOMC minutes

Key takeaways

• Bitcoin briefly dipped below the $84,000 threshold during Wednesday’s Asian trading session.
• Rising crude oil prices have heightened inflation anxieties ahead of the FOMC minutes, keeping interest-rate expectations in sharp focus.
• Bitcoin’s critical near-term support is established between $80,000 and $82,000, while a sustained move above $87,000 could bring the $100,000 level into play.

Bitcoin experienced downward pressure on Wednesday as market participants awaited the Federal Reserve’s meeting minutes and weighed the inflationary threat of rising oil prices.

Despite a positive shift back to inflows for U.S. spot Bitcoin exchange-traded funds, the cryptocurrency slid below $84,000 during Asian trading hours.

These market fluctuations underscore ongoing apprehension regarding monetary policy. While the likelihood of an interest rate hike in October has diminished, market analysis shows that investors still price in a strong probability of additional policy tightening by December.

ETF inflows resume, but Bitcoin struggles to gain traction

According to Farside data cited in the report, spot Bitcoin ETFs listed in the U.S. brought in $118.8 million in net inflows on October 6. This followed net outflows of $89.8 million on October 5.

While this turnaround provided a positive demand signal, it was not enough to keep Bitcoin from dropping below the $84,000 threshold the next morning.

The inconsistent nature of these flows indicates that investment demand lacks the steady momentum required to drive a prolonged upward trend. A more robust recovery would likely require sustained ETF inflows paired with stronger spot market purchasing.

The upcoming FOMC minutes could significantly shape forecasts for the Federal Reserve’s next policy moves. If the minutes reveal a strong inclination toward further rate hikes, both Bitcoin and gold could face downward pressure. Elevated interest rates bolster the appeal of yield-bearing assets, thereby raising the opportunity cost of holding non-yielding assets like gold and cryptocurrency.

Conversely, a more cautious, patient approach from the Fed could offer support, though rising energy costs are clouding the macroeconomic landscape.

Oil prices climbed on Wednesday as geopolitical conflicts in the Middle East and an approaching storm in the Gulf of Mexico fueled fears of supply chain disruptions. Should these high energy costs keep inflation elevated, expectations for further monetary tightening are likely to grow.

Bitcoin price outlook: $80,000 support remains crucial

On the daily chart, Bitcoin is consolidating inside an ascending broadening wedge pattern, with immediate support established around the $80,000 to $82,000 range.

If Bitcoin manages to stay above this support zone, the positive near-term outlook presented in the analysis remains intact. A decisive break above $87,000 could then shift attention toward the $100,000 milestone.

Conversely, dropping below $80,000 would invalidate this bullish structure, potentially exposing the $70,000 to $75,000 zone. If losses extend below $70,000, the next key support area lies around $65,000.

Looking at the weekly chart, analysts point to a broader support band between $50,000 and $60,000, along with a potential cup pattern developing within an ascending channel.

In this optimistic scenario, a future breakout above $100,000 could set the stage for a rally toward $150,000. However, these targets are conditional technical projections rather than guaranteed price targets.

While the return of ETF inflows is a positive sign for Bitcoin, more consistent and robust demand is required to absorb selling pressure and fuel a lasting breakout.

In the short term, the primary technical objectives are maintaining the $80,000–$82,000 support floor and breaking through the $87,000 resistance barrier.

At the same time, shifting interest rate expectations driven by energy-related inflation fears and the upcoming FOMC minutes are poised to impact both Bitcoin and gold markets.

Should Bitcoin fail to defend its current support levels, the market faces an increased risk of a more pronounced correction.