Bitcoin leaves the October haunted house as $BTC rebounds to a weekly high near $84,500

Bitcoin reached a weekly high near $84,500 on Wednesday, gaining 2.5% over 24 hours as the crypto market rebounded from a mid-October slide that pushed it below $80,000. Total crypto market capitalization, the combined value of every coin, rose 2.2% to $2.9 trillion. $ETH climbed 2.5% to $2,504, Solana gained 2.2% to $108.18, BNB rose 2% to $749, and XRP led the large caps with a 4.1% gain to $1.37. Zcash jumped 11.2% to $1,332 and added 15.3% over seven days.

The Crypto Fear & Greed Index, a 0-to-100 gauge where 0 means extreme fear and 100 means extreme greed, read 55, 3 points higher than the previous reading. A score of 55 is classified as neutral.

Brent crude, the global oil benchmark, swung between $97 and $112 a barrel this month and traded near $108 on Wednesday. The war with Iran kept supply fears alive, and Washington rejected an Iranian plan to reopen the Strait of Hormuz in late September. U.S. consumer prices rose 3.7% in September from a year earlier, above the 3.6% economists expected and up from 3.4% in August. Higher inflation can push up Treasury yields, the annual return investors demand for lending to the U.S. government. Government bonds paying more than 5% with almost no default risk can pull money away from stocks and crypto, while higher rates make the borrowing behind leveraged trades more expensive.

The Federal Reserve’s benchmark rate sits at 3.75% to 4% after a September hike. CME FedWatch gives about an eight-in-ten chance of a hold at the Oct. 28 meeting, while markets firmly expect a hike on Dec. 9.

On the daily chart, $BTC opened Wednesday at $82,928.80 and reached $84,726.28, up 1.94% for the candle, after bouncing about 6% from the month’s low near $79,711. It was pressing natural resistance at $87,422.70. Bitcoin’s latest rally ran from $62,763 to a September high of $87,422.70 and established strong support at $81,603. Bitcoin lost that level in the October dip before reclaiming it, with the move remaining on the upper side of its bounce. The 50-day exponential moving average, an average of recent closing prices weighted toward the most recent days, sat near $80,782, above the 200-day moving average at about $76,084. A 50-day average above the 200-day average is the standard sign of an uptrend, and Bitcoin traded 4.6% above the shorter average.

The Relative Strength Index, or RSI, which scores recent buying against selling on a 0-to-100 scale, read 58.5. Readings above 50 indicate buyers have the edge, while 70 marks overbought territory, leaving momentum below overbought and moving toward a bullish mood. The bullish scenario called for a daily close above $84,726, today’s high, alongside a favorable reading from ADX, an indicator of trend strength.