Bitcoin faces an $8,000 trading trap as US midterms approach

Two hot inflation reports in two days resulted in Bitcoin falling below $80,000 on Oct. 15.September CPI accelerated to 3.7% from 3.4%, and producer prices jumped 1.3% on the month, the largest rise since March 2022 and more than double the forecast in most surveys.Can-Luca Köymen, investment strategist at Sygnum, said in a note that the bank's base case is a range-bound move into the midterms.Köymen says options price roughly $80,000 to $87,000 over the coming month, and on-chain cost-basis data draws much the same box. Support sits at $80,000 to $81,500, where the average US spot ETF buyer breaks even, and resistance sits near $88,000, the break-even for buyers from six to 12 months ago.Below $80,000, the next floor is around $78,000, the average cost basis of active investors.Glassnode's Oct. 14 report estimates the aggregate cost basis of Bitcoin held by US spot ETFs near $81,500, which describes the funds' aggregate holdings, a measure separate from each shareholder's personal entry price.It puts the six-to-12-month cohort's cost basis near $88,000 and the True Market Mean near $78,000, and it finds the largest concentrated Binance spot bids around $80,000. Bitcoin dipped belo...