Bitcoin trapped below $86K as PCE changes cloud inflation reading
Bitcoin stayed above $83,000 after briefly pulling back from gains sparked by softer-than-expected US inflation data. BTC opened Q4 near $83,550 after a strong third quarter, rising 42.7%, its best Q3 since 2017. Price action stalled near $85,600, with liquidation data showing a new cluster around $83,000 and key support near $82,500. The August PCE inflation gauge, the Fed’s preferred measure, rose 3.4% year over year versus 3.7% expected, while core PCE increased 3.0%. Markets largely discounted the report, and Fed rate-cut odds for October remained modest. Onchain data showed Bitcoin futures open interest falling to its lowest since March even as price rose, which may reduce the risk of a leverage-driven selloff. Resistance remains concentrated around $84,000–$85,000.
