Bitcoin bulls defend $80K support after hot U.S. CPI report, will BTC reclaim $85K?

Bitcoin price held firmly above the key $80,000 psychological support on Tuesday after hotter-than-expected U.S. CPI data briefly triggered volatility across risk assets, with bulls now attempting to regain momentum toward the $85,000 region.

According to data from crypto.news, Bitcoin (BTC) traded around $81,300 at press time on May 13 after rebounding from intraday lows near $80,400 following the inflation report release. The bellwether asset continues consolidating below the important $82,300 resistance zone after several failed breakout attempts over the past week.

Despite the initial market reaction, traders increasingly believe the hotter CPI print had already been largely priced in ahead of the release, limiting broader downside pressure across crypto markets. Risk appetite also stabilized as investors shifted focus toward upcoming U.S. crypto regulation developments, particularly the proposed CLARITY Act, which many market participants view as the next major catalyst for institutional adoption and regulatory certainty.

At the same time, on-chain sentiment has continued improving despite recent volatility. CryptoQuant analysts recently noted that their proprietary market cycle signal has flipped Bitcoin into early bull market territory for the first time since March 2023, suggesting longer-term momentum may still favor the upside despite short-term consolidation.

Derivatives positioning additionally shows traders continue heavily defending the $80,000 support region. CoinGlass liquidation heatmap data reveals large clusters of leveraged liquidation liquidity concentrated between roughly $84,000 and $85,500, while another dense liquidity pocket has formed just below the $80,000 mark.

Such liquidity zones often act as magnets for short-term price action as market makers hunt areas with high leverage concentration.

Meanwhile, broader macro sentiment has shown signs of stabilization after the latest inflation data failed to trigger a sustained sell-off across equities and crypto markets. Traders appear increasingly focused on whether the Federal Reserve will maintain its current policy stance rather than reacting aggressively to a single CPI release.

Bitcoin price analysis

On the daily chart, Bitcoin continues trading within a broader ascending channel structure that has remained intact since late March, with buyers repeatedly stepping in near the lower trendline support.

BTC recently bounced near the 0.5 Fibonacci retracement level around $80,180, which continues acting as a critical short-term support zone. The latest rebound suggests bulls are still defending the broader higher-low structure despite weakening momentum over recent sessions.

Bitcoin also remains above its 20-day, 50-day, and 100-day simple moving averages, while the Supertrend indicator continues holding in bullish territory near the $75,500 region, indicating that the broader trend structure remains constructive.

However, the 200-day SMA near $82,300 continues acting as immediate overhead resistance and has repeatedly capped upside attempts over the past several sessions.

Momentum indicators suggest bullish pressure has cooled slightly but not fully reversed. The MACD remains in positive territory, although the histogram has flattened considerably, signaling that upside momentum may temporarily be slowing as the market consolidates below resistance.

If bulls manage to reclaim the $82,300 region decisively, Bitcoin could target the next major resistance near the 0.618 Fibonacci level around $84,380, followed by the broader liquidation cluster near $85,000–$85,500.

On the downside, failure to hold above the $80,000 psychological support zone could weaken the ascending structure and potentially expose BTC to deeper downside toward the $76,000 region, where the 100-day SMA and lower channel support currently converge.