Key takeaways
- Bitcoin struggles near $76,000 after another volatile week
- Fed rate hike expectations pressure cryptocurrency market sentiment
- Breaking $75,000 could expose deeper downside toward $72,000
Bitcoin is trading near $76,000 on November 8, struggling to establish a meaningful recovery after last week's selloff as investors prepare for a potentially decisive US inflation report.
The immediate question is whether Bitcoin can defend the $75,000 area before Tuesday's inflation release or whether another increase in Federal Reserve rate hike expectations could trigger a deeper decline.
Bitcoin Price Prediction: Can BTC Reclaim $78,000?
Bitcoin's short-term technical structure remains weak after its November 5 decline, when BTC briefly recovered above $80,000 before falling toward $75,000.
The cryptocurrency is now trading below its 50-day moving average near $81,770, suggesting the broader recovery has yet to regain momentum.
Technical indicators identify immediate resistance around $76,300, followed by $77,700–$78,000. Reclaiming the latter region would strengthen the case for another attempt to recover $80,000.
On the downside, initial support lies near $75,150, followed by the $74,000–$74,800 region.
A sustained breakdown below $74,000 could expose $72,000–$72,300, particularly if selling pressure accelerates alongside weakness in US equities.
The latest setup follows an earlier Bitcoin price correction, which erased the cryptocurrency's brief recovery above $80,000.
Fed Rate Hike Odds Rise Ahead of November CPI
The next major catalyst arrives November 10, when the Bureau of Labor Statistics publishes October's Consumer Price Index.
Friday's US employment report showed 165,000 jobs added during October, substantially exceeding expectations.
The stronger labor market pushed market-implied probabilities of a December Federal Reserve rate hike toward 80%, reinforcing concerns that borrowing costs could remain elevated.
Higher interest rates can reduce demand for speculative investments by increasing yields on lower-risk assets and tightening financial conditions.
A softer inflation reading could improve sentiment, but a sustained rally would still require Bitcoin to recover important technical resistance levels.
BlackRock ETF Withdrawals Add to Bitcoin's Challenges
Institutional demand remains another obstacle to recovery.
US spot Bitcoin ETFs recorded approximately $1.28 billion in net outflows during the November 2–6 trading week, including $411.9 million on Friday.
BlackRock's IBIT accounted for $403 million of Friday's withdrawals, while Fidelity's FBTC attracted $42.8 million, demonstrating how ETF flows have diverged between issuers.
The selling follows an earlier $514 million withdrawal streak during November's opening sessions.
However, ETF redemptions do not necessarily determine Bitcoin's next price movement, particularly when spot demand elsewhere absorbs selling pressure.
The cryptocurrency's outlook also remains sensitive to the broader year-end recovery scenario, which depends on reclaiming previously lost resistance.
