Bitcoin and Ether recovered after a sharp drop tied to hotter-than-expected U.S. producer inflation data, with the crypto market extending its rebound on Oct. 16. Bitcoin traded at $82,333, up 0.8% over the past 24 hours, while Ether regained the $2,400 level and changed hands at $2,440, up 0.84%.
Intraday, Bitcoin fell as low as $79,800 before rebounding, for a swing of about 3% between the session low and high. Ether rose more than 5% from the previous day’s low of $2,318. Major tokens broadly stabilized, and the Fear and Greed Index rose by 10 points in a single day.
$840 million liquidated in 24 hours, with longs taking most of the damage
According to CoinGlass, total liquidations across crypto derivatives markets reached $840 million over the past 24 hours. Long liquidations accounted for $670 million, compared with $170 million for shorts.
Most of the forced unwinds came after the Sept. 15 PPI release, when Bitcoin briefly fell below $80,000 and Ether slipped under $2,400. Leveraged long positions were cleared out on a large scale during the sell-off. The rebound that followed eased pressure on short positions.
September PPI beat expectations as U.S. stocks closed mixed-to-higher
U.S. September Producer Price Index data showed a 1.3% month-over-month increase and a 6.3% year-over-year increase, both above market expectations of 0.6% and 5.5%. The report marked the largest increases since 2022 and initially triggered selling across global risk assets.
After that, U.S. equities showed a split but generally firmer close. The Dow Jones Industrial Average rose 1.08% to 52,177.69, the S&P 500 gained 0.33% to 7,744.06, and the Nasdaq edged up 0.08% to 26,713.03. The 10-year U.S. Treasury yield fell back to 5.089%. In the source article’s description, risk appetite did not keep deteriorating, and buyers stepped in at lower levels in crypto.
SOL and XRP also moved higher
Other major cryptocurrencies also recovered. Solana gained about 1% to $105.49, with a 24-hour range of $100.62 to $106.51. XRP rose 0.53% to $1.3358, trading in a range of $1.284 to $1.3476.
Bitcoin’s peak over the past 14 days was $86,789.89 on Oct. 2, while its recent low was $80,116 on the evening of Oct. 15. The source said the current price was near the upper end of the range formed after the rebound from that low.
Technical levels: BTC RSI at 48.9, ETH RSI at 39.9
On the technical side, Bitcoin’s daily candle closed at $82,246, with RSI at 48.9, in neutral territory. The close sat below the 20-day simple moving average at $83,756, but above the 50-day SMA at $81,258 and the 200-day SMA at $72,324. MACD remained in a bearish alignment, though the histogram narrowed from the previous day. Resistance stood at the 20-day SMA of $83,756 and the upper Bollinger Band at $86,419. Support stood at the 50-day SMA of $81,258 and the lower Bollinger Band at $81,093.
Ether closed the day at $2,442, with RSI at 39.9, in weaker territory. The close remained below the 20-day SMA of $2,601 and the 50-day SMA of $2,555, but above the 200-day SMA of $2,144. MACD also stayed in a bearish alignment, with a narrowing histogram, and the close was near the lower Bollinger Band at $2,386. Resistance was identified at the 50-day SMA of $2,555 and the 20-day SMA of $2,601. Support was placed at the lower Bollinger Band of $2,386 and the 30-day low of $2,318.
Fear and Greed Index returns to greed at 63
Data from Alternative.me showed the Fear and Greed Index at 63, up 10 points from 53 a day earlier, moving from neutral back into greed territory. Over the past eight days, the index has ranged between 53 and 69.
The source article said market sentiment recovered quickly after CPI and PPI both came in hotter than expected. It added that bulls and bears were still digesting the inflation data’s implications for Federal Reserve policy, while crypto prices remained volatile and range-bound in the short term.