Bitcoin dips 1% but ETF demand supports recovery

Key takeaways 

• Bitcoin ETFs attracted approximately $3 billion across eight consecutive sessions of positive inflows.
• Upcoming US inflation and growth data could influence interest-rate expectations and short-term market direction.
• Holding support between $80,000 and $82,000 could support another attempt at $85,000, with $90,000 a potential subsequent target.

Bitcoin has dipped 1% over the past 24 hours, but its recovery remains within a broader consolidation following the recent advance toward $85,000.

The retreat from that level has been interpreted as profit-taking after a strong rally. Continued institutional inflows support the bullish case, although the shorter-term chart suggests the correction has not necessarily finished.

Attention is now turning to US economic releases and whether Bitcoin can maintain support if inflation concerns prompt investors to reduce exposure to risk assets.

Inflation expectations create a near-term test

The  US inflation and economic growth figures are important potential catalysts for Bitcoin.

Analysts expect a 0.4% monthly increase in the August Personal Consumption Expenditures price index, compared with 0.2% the previous month. 

They also forecast 1.5% second-quarter GDP growth, following a 2% first-quarter reading.

A stronger-than-expected inflation figure could reinforce expectations of tighter monetary policy. 

Higher interest rates can pressure cryptocurrencies by increasing the appeal of interest-bearing assets and making financial conditions less supportive of speculative investment.

The probability of an October Federal Reserve rate increase now stands at 68%, according to FedWatch data. That figure represents a market-implied estimate at the time of the analysis, rather than a confirmed policy decision.

Inflation above expectations could weigh on Bitcoin’s recovery. A softer reading could ease some of that pressure, although the market’s response would also depend on the growth figures and how investors interpret the policy outlook.

Institutional demand remains a counterweight to those macroeconomic risks. According to SoSoValue data, US spot Bitcoin ETFs recorded eight consecutive trading sessions of net inflows. 

Approximately $3 billion entered the products during that period, approaching the amount attracted throughout August.

The sustained inflows indicate that investors continued allocating capital to Bitcoin exposure despite its recent pullback.

However, ETF buying does not eliminate selling pressure elsewhere in the market. Existing holders taking profits, changes in leveraged positioning, and reactions to economic data can still interrupt an advance.

The next test is whether those inflows remain strong enough to support demand as Bitcoin approaches its nearby technical levels.

Short-term chart points to an unfinished pullback

Bitcoin’s momentum indicators present a mixed picture across time frames. The Relative Strength Index remains near 60, supporting the view that broader momentum is still constructive. Sentiment readings in “Greed” territory also suggest confidence remains elevated.

On the four-hour chart, however, Bitcoin has formed lower highs and lower lows. That structure indicates sellers continue influencing short-term price action, even while the broader recovery remains intact.

The $80k-$82k level is a potential support zone where buyers could return. A rebound would strengthen the consolidation scenario, while a decisive break below the area would weaken the proposed setup.

If Bitcoin holds the $80,000–$82,000 zone and buying momentum improves, the next major test would be another attempt to clear $85,000.

A sustained breakout above that barrier could open a path toward the $90,000 range and potentially $100,000 as longer-term possibilities if bullish momentum persists.

Those targets remain conditional. Bitcoin first needs to stabilize through its pullback and overcome resistance, while upcoming economic data could determine whether buyers retain control of the support zone.