Bitcoin slips toward $83,000 as analyst warns of further decline if stability fades

Bitcoin reached an intraday high of $85,518 early Wednesday before pulling back to the $83,000 range by evening. Ethereum traded between $2,650 and $2,730. The headline reported gains for XRP and Dogecoin without giving figures. Strategy shares closed down 1.02%. Bitmine Immersion Technologies shares closed down 1.12%. More than $260 million in cryptocurrency positions was liquidated over the last 24 hours, according to Coinglass data. Long and short positions accounted for roughly equal shares of those liquidations. Bitcoin's open interest rose 0.92% over the last 24 hours. Rising open interest alongside a falling price typically signals that new sellers are building short positions. The Crypto Fear & Greed Index showed that greed prevailed. On Monday, the Dow Jones Industrial Average fell 0.86%, or 443.87 points, to 50,906.05. The S&P 500 fell 0.25% to 7,651.54. The Nasdaq Composite rose 0.24% to 26,861.06. August's personal consumption expenditures price index rose 0.3% from the previous month, below economists' 0.4% expectation. Headline PCE inflation held at 3.4%, matching July's revised reading and falling below the 3.7% consensus. Traders priced in a 38% chance of a 25-basis-point rate hike next month, down from 50% the day before, according to CME FedWatch. Analyst Rekt Capital said Bitcoin needs to remain stable above the low $80,000s for further upward movement. Rekt Capital said losing that stability would return Bitcoin to its $60,000-to-$80,000 macro range for further consolidation. CryptoQuant said Bitcoin's 90-day Buy/Sell Pressure indicator returned to a zone associated with stronger buying pressure. CryptoQuant said the indicator remained below levels seen during stronger expansions. CryptoQuant said a reversal in the indicator while Bitcoin's price rises would suggest the rally is losing support. CryptoQuant said a continued rise in the indicator would strengthen the case for a durable trend.