Bitcoin (BTC) is currently trading at $61,150 after briefly dropping to $58,895, showing signs of a slight recovery. BTC reached an intraday high of $61,437 but is struggling to sustain momentum above the $61,300 level.
Despite an 8% increase in daily trading volume, bringing it to $30.59 billion, Bitcoin is finding it hard to establish a new upward trend. After falling to a recent low of $58,895, the price began consolidating losses before recovering slightly above $61,200, breaking through the 23.6% Fibonacci retracement level from the earlier dip.
The recent price drop coincided with higher-than-expected U.S. Consumer Price Index (CPI) data, which showed inflation rising 0.2% in September. This unexpected inflation spike likely contributed to Bitcoin’s drop below $60,000, raising uncertainty about whether the price will continue to decline or start to rise again.
Key resistance for Bitcoin lies at $61,750. If BTC can break above this level, it may push towards $62,000, with the potential to test $62,800, and further gains could bring it to $63,500 or even $64,000 in the coming days.
However, technical indicators suggest weakness, as the 4-hour MACD is losing momentum in the bearish zone, and the RSI remains below 50, reflecting limited buying pressure. If Bitcoin fails to surpass the $61,800 resistance, it could face another decline, with immediate support at $59,400, followed by key support levels at $58,750 and $58,500. A further drop could lead to BTC testing the $57,000 support in the near future.
