If the bulls hold a key level, Bitcoin’s price could reach $100K by Thanksgiving.

Bitcoin surrounded key local lows on November 15 as bulls traded all-time highs for support tests.

Bitcoin freezes as US PPI talks of stagflation erupt

Data from Cointelegraph Markets Pro and TradingView showed Bitcoin (BTC) price falling to a daily close below $87,000.

On November 13, after making new highs of $90,000 and above, the market was unable to reach support as it pulled back to the lows.

The latest US inflation data, the October publication of the producer price index (PPI), showed inflationary forces returning as the Federal Reserve cut interest rates.

PPI was 2.4% for October, according to data from the Bureau of Labor Statistics, 0.1% above expectations.

“Both PPI and CPI inflation are now officially rising above 3.0% of core inflation,” marketing resource The Kobeissi Letter by X.

“The work of the Federation is still not done here.”

For risk assets and crypto, the harshness of a new financial policy due to price increases has returned to traders' consciousness.

According to CME Group's FedWatch Tool, the odds of another rate cut at the Fed's December meeting were 58% on Nov. 15 — up from 82% the day before.

Next, Kobesi warned that rising prices and a weak labor market could present a new problem for the Fed: stagflation.

“This is a terrible situation for the federation, because it puts them in bankruptcy,” he said.

“If you raise rates, we'll go into recession. If you lower rates, inflation will go higher.”

BTC Price's ‘Troublesome' Selloff and $86K Line Hits the Sand

As Bitcoin runs out of steam on the back of inflation and cool language from Fed Chairman Jerome Powell, the analysis urges protection around $87,000.

Related: Bitcoin Corrects As US Inflation Data Releases – Is The Rally To $100K At Risk?

“The same passive buyer in these 3 minimum buyers would be about $87K before it was finally taken,” Trader Skew said of the lower timeframes.

“Probably 800BTC + filled, which is very context for this low, because if they lose again, they will probably sell part of this risk.”

Skew then spies BTC/USD into what it calls a “brutal seller” low.

Meanwhile, according to Keith Allan, founder of Trading Resources Material Indicators, a return to the mid-$80,000s could ultimately prove strong for BTC price strength.

“A retest of support at $86k will be healthy for $BTC, and will give us some insight into whether this momentum can sustain at $100k or if progress is slowing down. Over 5 minutes,” he told X Followers.

Later, Alan suggested that Bitcoin could hit its final psychological target – $100,000 – right around Thanksgiving on November 28.

But to do so, he had to wait for the rising short-term trend line.

“If support fails on the line, the price will look for support in the $75k-76k range,” he warned.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.