Once again, Bitcoin’s price flirting with the $74,000 level is driven by the recent US Personal Consumption Expenditures (PCE) inflation data that has supported risk assets and lifted US stocks.
The January PCE inflation index, the one the market looks at most closely regarding inflation, was in line with the market forecast, being 0.3% month-to-month and 3.1% year-to-year.
PCE Inflation Data Leads To
The PCE figures have lessened the fears of the investors, resulting in Bitcoin’s price reaching fresh local highs of almost $74,000. The PCE numbers have also caused a dissimilarity in the relationship between risk assets and oil; WTI crude is down 2% today.
Michal van de Poppe, a well-known crypto trader, indicates that the resistance region for Bitcoin is in the interval of $76-79K, and if this level is broken, he anticipates more strength in the altcoin markets.
Also Read: Saylor Says MicroStrategy Bitcoin Purchases May Tighten Supply
Mixed Forecasts: Bullish and Bearish Perspectives
Some traders believe that BTC still has the potential to increase further, while others are warning about the possibility of a “bearish retest”. Daan Crypto Trades is giving an alert that there could be a significant drop if the current trading range breaks down, whereas Trader Roman sees this gradual upward movement as a bearish retest and supports his view with RSI bear divergences and bearish price action.
Also Read: BTC Policy Institute (BPI) Challenges Fed Basel Rules Over 1,250% Bitcoin Risk Weight
Conclusion
Independent analyst Filbfilb presents that open interest (OI) is a crucial factor, and a decrease in OI might indicate that the upward movement is ending.
Key Technical Levels to Watch Bitcoin’s price is currently testing its 50-day simple moving average (SMA), a major resistance area above the head. If BTC manages to get above this level, it might form a monthly engulfing candle, thereby negating the entire February correction. That being said, a failure at this resistance level could prompt a pullback.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: BTC Bottom Structure May Signal Next Market Cycle
