Bitcoin (BTC) Hovers Above $83,000 After U.S. Inflation Data Undershoots Expectations

Bitcoin (BTC) hovered above $83,000 on April 11 after U.S. inflation data undershot expectations.

Bitcoin (BTC) price hovered above $83,000 on April 11 after U.S. inflation data and a classical breakout pattern signaled more gains in the sessions ahead.

BTC/USD is now trading at $83,609.

Bitcoin bounces back after PPI

CoinGecko data showed BTC/USD bouncing from lows of $74,500 earlier in the week to reach a high of $83,500. The recovery accelerated following the Producer Price Index, which showed a 0.4% month-over-month decline. This marked the first drop of its kind since March 2024.

Highlighting the potential for a continuation of the bull market, CryptoQuant showed the long-term holder (LTH) realized cap exceeding $18 Billion for the first time since September 2024.

The metric, which measures the cost basis of coins held for over 155 days, often denotes aggressive accumulation during market bottoms. When the LTH realized the cap reached $18 Billion in September 2024, BTC experienced a significant shift. Over the following months, the value of Bitcoin doubled, showcasing substantial market momentum.

“This type of behavior is typically followed by sustained rallies throughout history,” stated CryptoQuant. The accumulation pattern mirrors Q3 2024 and occurs alongside a sharp decline in open interest. It fell 28% between December 18 and April 8.

At the same time, data from Glassnode identified a support cluster around $79,000, highlighting a consolidation of wallet balances at this level.

Around 40,000 BTC were acquired at this price zone, indicating strong buyer interest. Another 51,000 BTC was absorbed in the $82,080 zone.

Tech traders spot inverse head and shoulders

Technical traders spotted the formation of an inverse head and shoulders on the Bitcoin daily chart. Merlijn The Trader summarized the pattern on X as “Simple. Classic. Explosive,” implying a textbook breakout may soon follow.

Cold Blooded Shiller, another pseudonymous trader, highlighted the test of BTC of a descending trendline. The trader called the setup “enticing” for bulls. The RSI on the daily timeframe was nearing overbought territory, often viewed as a precursor to stronger upside moves.

User @MaxBecauseBTC also commented that Fartcoin’s potential rises as RSI nears 70. He connected its momentum to the trajectory of Bitcoin in the market.

At the same time, CryptoQuant data showed balances in wallets holding 1,000–10,000 BTC are rising faster than the 30-day average. These entities, often called whales, have a history of timing large moves, either as early adopters or distribution sellers.

Bitcoin price gap fills to spark 2024 rally

Bitcoin analysts tracking price gap fills now point to a void between $70,000 and $75,000 that BTC has fully reclaimed. X user Enzy Bitcoin suggested that the asset rises after filling price gaps.

According to his analysis, if the gap is filled completely, BTC may continue its ascent, potentially reaching $130,000 if historical trends continue.

While some market participants speculated on even higher levels, including $250,000 over the long term, others urged caution. BitBull noted that Bitcoin’s strength contrasts sharply with traditional market volatility.

“Stocks remain shaky, but Bitcoin holding $80,000 sends a message,” BitBull posted.

That view aligned with the recent weakness of the U.S. Dollar Index (DXY). The index dropped below 100 for the first time since 2022. Venturefounder highlighted this macro signal, saying past DXY drops “triggered a Bitcoin parabolic bull run.”

Chart data showed a downward RSI divergence on DXY, with traders betting on further downside to 90. That scenario typically favors risk assets like BTC.