Bitcoin (BTC) aimed for five-week highs at Thursday’s Wall Street open as US inflation trends stayed on track.
Key points:
US inflation data keeps crypto and stocks higher as BTC price action tests $74,000 again.
Bitcoin traders diverge over the future of the move, with a “bearish retest” risking a new price collapse.
BTC/USD finally recrosses its 50-day moving average trend line.
PCE inflation emboldens Bitcoin bulls
Data from TradingView confirmed new local BTC price highs near $74,000 following the January print of the Personal Consumption Expenditures (PCE) Index.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Known as the Federal Reserve’s “preferred” inflation gauge, January PCE matched market expectations, coming in at 0.3% month-on-month and 3.1% year-on-year, per data from the Bureau of Economic Analysis.
PCE Index % change (screenshot). Source: Bureau of Economic Analysis
While still at its highest levels since late 2023, the result appeared to soothe risk assets, with US stocks up around 0.5% at the time of writing.
In doing so, both risk assets and crypto began to diverge from a positive correlation to oil seen over the week. WTI crude was down 2% on the day at around $95 per barrel.
CFDs on WTI crude oil one-hour chart. Source: Cointelegraph/TradingView
BTC price forecast: $79,000 or “bearish retest?”
Commenting on Bitcoin, crypto trader Michaël van de Poppe was cautiously upbeat on the outlook.
Related: Bitcoin’s ‘narrative vacuum,’ Ethereum now inevitable: Trade Secrets
“Resistance zone for me is between $76-79K for Bitcoin. I don’t expect a fast breakout in one-go, but I would assume that we’re going to see some extra momentum occur on the altcoin markets in that window,” he wrote in a post on X.
“In the meantime; if Bitcoin gets there, it provides a monthly engulfing candle and therefore, it erases the entire correction of February.”BTC/USDT 12-hour chart. Source: Michaël van de Poppe/X
Others stayed on edge, with trader Daan Crypto Trades warning of a “large drop” if the current trading zone collapsed.
$BTC If this level breaks, it’s time for a large drop….
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