Bitcoin drops below key support after hot US CPI data, with potential slide to $78K

invezz.com (Portuguese) —

Bitcoin fell over 3% after hotter-than-expected US inflation data, raising expectations of another Federal Reserve rate hike and pushing the cryptocurrency below key technical support levels. The Consumer Price Index rose 3.7% annually, up from 3.4%, with monthly prices increasing 0.6% driven by a 9.1% jump in gasoline costs. Market odds for a Fed rate increase in October surpassed 50%, while Treasury yields and the US dollar strengthened, pressuring risk assets. Technical analysis shows Bitcoin broke below a bearish flag pattern, with the next downside target near $78,218. Support sits around $80,000, while a daily close above $84,000 would weaken the bearish outlook.


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