Bitcoin, Ethereum, and XRP attempted to recover on Monday, following a volatile week pressured by persistent US inflation and continued withdrawals from crypto investment funds.
Bitcoin rebounds near key technical support
Bitcoin traded at $82,647 as of Monday, extending its rebound from the 50-day Exponential Moving Average (EMA) at $80,607. This level has served as a critical short-term support, allowing buyers to stabilize after recent declines.
Ethereum and XRP also worked to regain their footing, trading near important support zones after closing the previous week on a bearish note. However, investors remained cautious as macroeconomic pressures persisted.
Despite the rebound, Bitcoin faces challenging resistance just ahead, particularly as concerns over persistent US inflation and policy uncertainty limit risk appetite. Exchange-traded fund (ETF) redemptions signaled lackluster interest from institutional investors using regulated products.
For the near term, the primary focus remains on whether buyers can convert the current recovery into a sustained move above immediate resistance and restore upward momentum.
Inflation data drives interest rate uncertainty
Recent US inflation figures further complicated the market landscape. September’s Consumer Price Index rose 3.7% year-on-year, surpassing expectations of 3.6%. Producer inflation reached 6.3%, above the 5.3% analysts forecasted.
These higher-than-expected readings indicated that both consumer and producer inflation remain persistent, raising the likelihood of another Federal Reserve rate hike later this year.
Higher interest rate expectations often translate into tighter financial conditions, which can pressure risk assets like cryptocurrencies. While digital assets showed signs of resilience, the recovery did not fully resolve the broader economic uncertainty that fueled last week’s volatility.
US inflation releases indicated stubborn price pressures at both the consumer and producer levels, increasing the risk of a further interest rate hike and adding to volatility in crypto markets.
Crypto ETFs experienced another round of net outflows as investors responded to inflation concerns by trimming risk. Bitcoin ETFs recorded $228 million in outflows last week, marking a second consecutive week of negative flows but showing improvement from $681 million in outflows the prior week.
Ethereum ETFs posted $319 million in outflows, extending their losing streak to the third week. XRP investment products also reversed course, ending a 13-week stretch of inflows by losing $1.84 million last week.
These figures reflected subdued demand for major crypto assets via ETFs, despite Bitcoin’s reduced withdrawal pace. Analysts suggested that only a fresh turn toward sustained inflows would confirm a return of robust buying interest.
Technical outlook: BTC tests resistance while meme tokens surge
On the technical front, Bitcoin’s daily chart retains a constructive structure as long as the price trades above its 50-day EMA at $80,607 and the 200-day EMA at $76,034. The next upside test sits at a descending trendline near $83,823, just above the current price zone.
A clear break above this trendline could trigger a move toward $85,000, which previously limited further gains and remains a significant barrier. If buyers overcome that level, the next resistance is the September 21 swing high at $87,395.
Momentum signals remain inconclusive. The Moving Average Convergence Divergence is still below its signal line, and the Relative Strength Index stands at 51, reflecting neutral market sentiment.
If Bitcoin cannot clear the descending resistance, the 50-day EMA will be the first major support, with the 200-day EMA providing a deeper base for the medium term.
Continued monitoring of price action and trendline dynamics is vital for traders aiming to catch the next significant move. Similarly, in the meme token market, rapid shifts in sentiment and technical patterns can lead to dramatic gains within days. Data from Fomo App highlighted an investor turning a $99 “Niu Lai” trade into about $370,000, underlining how an internet trend can trigger rapid inflows. In these fast-moving projects, tracking both price action and the timing of major trades is essential. Fomo App supports users by combining token discovery and trading with social feeds, investor rankings, and instant trade notifications, making it a popular platform for following meme token trends and key investor moves.
Given the technical setup and broader market backdrop, Bitcoin’s ability to break above $85,000 will serve as a crucial indicator of whether buyers are regaining control.
Bitcoin must hold above its 50-day EMA at $80,607 and secure a breakout above $82,526 and $85,000 to confirm the next phase of recovery, with the 200-day EMA at $76,034 acting as a pivotal medium-term support.
