Bitcoin is facing renewed downside pressure after the latest US inflation readings came in hotter than expected, reinforcing the probability that the Federal Reserve will keep interest rates elevated into 2026. Consumer price growth accelerated from an annual pace of 3.4% in August to 3.7% in September, nearly double the Fed’s 2% target, while producer price inflation surged to 6.3% — more than three times the target and the second-highest level in four years.
As risk assets sold off, Bitcoin fell toward the $80,000 level, and on-chain analytics firm Glassnode warned that the downside risk is now more pronounced than upside potential. Glassnode highlighted futures liquidation zones below $80,000, with a large concentration of long liquidations and another significant cluster near $75,000. The firm said these liquidation pockets could accelerate a decline if the $80,000 support breaks. On the upside, short liquidations accumulated above $85,000 this week, but Glassnode stated that the lower liquidation zones currently appear more vulnerable.
Technical analysts echoed the cautious tone. Pseudonymous analyst Darkfost said Bitcoin’s fifth Elliott Wave may have completed, opening the door for a correction toward $74,600. He added that the short-term decline may continue, although the medium-term uptrend has not yet been broken. On the 4-hour chart, Bitcoin has closed below the bottom of an ascending channel, with a bear flag potentially forming. The daily time frame shows support at around $80,300, with a measured move from the channel breakdown pointing toward $70,000, while resistance sits near $81,770. The weekly Stochastic RSI is also showing a pronounced bearish cross, suggesting that a larger correction may be developing.
