BTC price support holds ahead of US CPI data: Three things Bitcoin traders need to know this week

Bitcoin traders prepared for potential inflation-driven volatility as key price support around $82,500 held firm ahead of crucial US inflation data. The US Consumer Price Index (CPI) and Producer Price Index (PPI) reports for September and October are scheduled to be released on Wednesday and Thursday. The September CPI came in at 3.4% year-over-year, with markets now forecasting an increase to 3.7% this month due to ongoing military action in the Middle East and fuel-price surges.

The Producer Price Index (PPI) is expected to show a 0.3% month-over-month increase, up from 0.2% in August.

Tim Waterer, chief market analyst at KCM Trade, noted that a cooler-than-expected US inflation reading could serve as a significant catalyst in the short term, reducing the odds of further Federal Reserve tightening and alleviating pressure on real yields. The chances of a rate hike during the upcoming Federal Open Market Committee (FOMC) meeting on October 28 stand at just 18.8%, according to CME FedWatch.

Conversely, the odds of a hike during the subsequent December meeting have risen to 70.6%, with the Federal Reserve targeting a rate range of 4.00-4.25%.

As of Sunday's weekly close, Bitcoin (BTC/USD) traded at around $83,700, marking a 3.2% decline over the week. However, BTC/USD maintained its key support level at $82,500, preventing a return to the previous long-term range between $60,000 and $80,000. Analysts such as Rekt Capital and Aksel Kibar have drawn parallels between Bitcoin's support testing and stock market retests, suggesting that a successful weekly close above $82,500 could signal a potential upward shift in Bitcoin's price.