Bitcoin Falls Below $80,000 After Weak U.S. Economic Data
Bitcoin fell below $80,000 after higher-than-expected inflation data from the United States increased pressure on risk assets and triggered a breakdown below key technical levels.
Summary:
- Bitcoin dropped below the psychological $80,000 level.
- RSI approached oversold territory.
- All major moving averages (MAs) remain above the current price.
The U.S. Bureau of Labor Statistics released the April Producer Price Index (PPI) data on May 13, and the results came in significantly higher than market expectations.
Monthly producer inflation reached 1.4% versus forecasts of 0.5%, marking the largest monthly increase since March 2022.
On a yearly basis, PPI climbed to 6%, compared to expectations of 4.9%.
Core PPI also surprised markets, rising 1.0% against forecasts of 0.4%.
When both the headline and core inflation figures exceed expectations by such a wide margin within a single month, markets typically begin rapidly repricing expectations for future Federal Reserve policy.
That is exactly what happened here.
Following the hotter-than-expected inflation data, markets quickly reduced expectations for near-term Federal Reserve rate cuts.
With inflation remaining persistent, the central bank usually keeps interest rates higher for longer, and in some cases, concerns even emerge about additional policy tightening. This environment generally puts pressure on riskier assets such as Bitcoin and cryptocurrencies because investors tend to shift capital toward more conservative instruments with more predictable returns.
The Drop Below $80,000
At the time of writing, Bitcoin is trading around $79,765 on the one-hour chart after briefly falling as low as $79,500 following the data release at 12:30 UTC.
The technical picture now appears significantly weaker compared to the recent consolidation period.
The 50 MA stands at $81,008, the 100 MA at $80,957, and the 200 MA around $80,858. All three moving averages remain above the current price, forming a resistance zone roughly $1,200 above current levels.
The breakdown below $80,000 also appears decisive. The candle that broke the level came with the highest trading volume of the day and closed clearly below the psychological threshold without any serious attempt to reclaim it.
The combination of high volume and a convincing close below a key level is what typically distinguishes a genuine breakdown from a brief test or liquidation-driven spike downward.
RSI Approaches Oversold Territory
The RSI(14) on the hourly chart is currently hovering around 30.94 – just above the zone technically considered oversold.
However, the indicator still does not provide a clear signal of a trend reversal.
Its average value remains at 50.16, leaving a gap of more than 19 points between the two lines – the largest visible divergence on the chart.
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This suggests that the downward momentum has not yet fully exhausted itself.
What Would Signal That the Decline Is Slowing
The first stronger sign of stabilization would be a move back above the 200 MA around $80,858, combined with RSI recovering above its average value.
Such a move would indicate that the market is gradually absorbing the initial shock from the inflation data.
A more sustainable recovery, however, would also require a move back above the 50 MA within the next several hours.
On the other hand, continued hourly closes below $79,576 with similar trading volume would suggest that the sell-off is not over yet and that the market may continue searching for lower levels before finding stronger support.
In our analysis of Bitcoin’s decisive moment published yesterday, the next closest support level was identified around $77,300.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Kosta Gushterov
Reporter at CoinsPress
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
