Bitcoin (BTC) has been trading above $83,000 after a brief rally that peaked at $85,600, but it has since given back gains following the release of the US Personal Consumption Expenditures (PCE) inflation data.
Despite the PCE inflation rate coming in lower than expected at 3.4% year-on-year, analysts caution that recent methodology changes may have skewed the results. This has led to uncertainty in the market, with Bitcoin's price remaining rangebound.
Open interest in BTC-denominated futures has fallen nearly 20%, suggesting that the current rally may be less vulnerable to forced liquidations. This decline in open interest coincides with Bitcoin's price increase of 35% from its August lows, indicating a divergence that could stabilize the market.
As Bitcoin enters Q4, historically its strongest quarter, it is crucial to monitor key support levels, particularly around $82,500. Analysts are watching for potential liquidation clusters and resistance around $85,000, which could impact Bitcoin's price trajectory in the near term.