Bitcoin holds above $80,000 despite dropping below $82,000 on heavy volume

Bitcoin fell below $82,000 on Thursday morning to trade at $80,915 at 7:15 AM ET, according to market data reported by Yahoo Finance and Fortune. The cryptocurrency opened at $81,573 before declining to $80,935 on elevated trading volume while holding above its $80,000 support level.

Bitcoin maintained its position above $80,000 despite a rout in Asian equity markets that dragged down broader cryptocurrency prices, CoinDesk reported. Ether dropped 3.1% to trade between $2,348 and $2,360, underperforming Bitcoin's 2.98% decline.

An analyst at 21Shares stated that Bitcoin's path to $90,000 remains intact if monetary policy pressures ease, according to Bitcoin.com. The strategist noted that the setup for a fourth-quarter rally depends on an October 28 interest rate decision and November consumer price index data.

The 21Shares analyst cited improved market structure compared to 2022, including BlackRock's IBIT spot ETF being accepted as bank collateral. Expanded institutional ownership and stablecoin growth have provided additional structural support, according to 21Shares.

Spot Bitcoin ETFs registered net outflows on October 14, reversing gains from the previous session, according to Bitcoin News Digest. Meanwhile, Ethereum funds accounted for 56% of total ETF outflows on October 12, taking out $85.4 million of $151.5 million, reported by The Block.

What do these terms mean?

Trading volume: The total quantity of a financial asset traded within a specified timeframe.

Support level: A price point where an asset historically encounters buying interest, preventing further price declines.

Spot ETF: An exchange-traded fund that directly holds physical underlying assets, allowing investors to gain price exposure on public exchanges.

Collateral: An asset pledged by a borrower to secure a loan or credit arrangement with a lender.