Bitcoin falls on hot CPI: Why $80,000 support matters

• Bitcoin dropped below $82,000 after a hot US CPI print for September.
• The decline placed BTC near $80,000, which holds the largest block of buy orders on Binance's spot order book.
• Long-term holders' realized losses have fallen, but break-even investors and ETF selling limits demand.

Bitcoin's (BTC) most critical level to watch is near $80,000 as September's hot inflation reading pressures the crypto market, according to Glassnode.

Bitcoin drops as US inflation exceeds forecasts

The top crypto declined within minutes of the September Consumer Price Index (CPI) release, which showed a 3.7% annual increase in headline inflation, above forecasts of 3.6%. Core inflation, which excludes food and energy prices, came in at 2.6%.

Bitcoin now faces risks on both sides of its current price, with $80,000 emerging as a critical support level and $88,000 representing a major resistance area, according to a Wednesday report from Glassnode.

Two large groups of Bitcoin holders sit above the current market price, creating potential resistance as the cryptocurrency attempts to recover.

Glassnode said BTC acquired six to 12 months ago has an average cost basis of roughly $88,000, while those purchased one to two years ago have a cost basis near $100,000.