Is Bitcoin heading for a brutal correction? Why $75,000 is back in play

Bitcoin slipped towards $80,000 again on Thursday as traders assessed the Federal Reserve’s latest policy decision and the prospect of tighter monetary conditions.

The leading cryptocurrency rallied to $81,713 on Wednesday but failed to surge higher, giving up its gains over the last few hours. 

During Thursday’s Asian session, BTC retreated from approximately $81,300 to an intraday low near $79,700. Losses briefly approached 2%, reversing part of the preceding two-day rebound.

The recovery had failed to produce a sustained break above $82,000, leaving the psychological $80,000 level at the center of short-term trading.

Fed holds rates but signals continued inflation concerns

The Federal Reserve kept its benchmark interest rate range unchanged at 3.75%–4.00% on Wednesday, matching market expectations.

However, the accompanying statement offered little encouragement to investors hoping for easier policy. Officials reiterated that inflation “remains elevated” and strengthened their description of economic activity from “solid” to “strong.”

The decision passed by a 10–2 vote, with both dissenting members supporting an immediate 25-basis-point increase.

That combination reinforced expectations that another hike remains possible in December. According to the CME FedWatch figures, traders assigned a 78.4% probability to a rate increase at that meeting.

The yield on the 10-year U.S. Treasury note briefly moved back above 5% following the decision.

Higher yields can make interest-bearing assets more attractive relative to investments such as Bitcoin, which does not generate a contractual yield. They can also tighten financial conditions and weigh on demand for speculative assets.

Against that backdrop, Bitcoin struggled to extend its recovery despite repeatedly attracting buyers near $80,000 in recent sessions.

Since retreating from above $84,000 on October 22, BTC has tested the $80,000 area several times. Intraday declines below that threshold on October 24, 26, and 27 were followed by buying support, but none produced a lasting upside breakout.

Bitcoin technical outlook: BTC faces support at $79,000

The BTC/USD daily chart continued to consolidate between the $82,000 and $80,000 levels. A prolonged stay below $80,000 would keep attention on recent lows around $79,000. 

If that support gives way, the next downside area is approximately $75,000. Such a move would deepen the correction and indicate that recent buying interest had failed to stabilize the market.

On the upside, Bitcoin first needs to reclaim $80,000 and then overcome $82,000. A sustained break above that resistance would improve the recovery outlook and could bring $87,000 back into focus.

Technical indicators continue to favor the sellers. Currently, the RSI of 44 shows that buyers are struggling to regain control, while the Stochastic reading of 21 is also within negative territory. 

PCE inflation report becomes next market test

Attention now turns to September’s US Personal Consumption Expenditures inflation report, scheduled for release later today.

The figures could reshape expectations for the Fed’s December decision. Stronger inflation would risk reinforcing rate-hike bets, while softer data could ease some pressure on yields and risk assets.

For Bitcoin, the response around $80,000 will help show whether buyers can rebuild momentum or whether the market remains vulnerable to another test of recent lows.