Bitcoin (BTC) remains locked in a tug-of-war, shrugging off positive US economic data on June 28th. The leading cryptocurrency continues to hover around the crucial $60,000 support level, raising concerns about its strength.
PCE Data Fails to Spark Bitcoin Breakout
The latest Personal Consumption Expenditures (PCE) data, a key inflation gauge for the US Federal Reserve, came in cooler than expected, reflecting a 2.6% year-on-year increase – the lowest level since March 2021. While traditionally seen as positive for risk assets like Bitcoin, this news failed to trigger a significant price movement.
Focus Shifts to September Rate Cut and Broader Market Trends
Analysts like Skew suggest investors might be looking past short-term data points. The focus seems to have shifted towards the potential for a Federal Reserve interest rate cut in September, a move historically seen as positive for cryptocurrencies. Additionally, broader market trends like the recent decline in retail sales and the upcoming US presidential election are also being weighed in.
CME Group’s FedWatch Tool currently puts the odds of a September rate cut at nearly 68%, potentially fueling a bullish outlook for Bitcoin.
Technical Analysis Reveals Mixed Signals
From a technical perspective, the picture remains unclear. While some analysts like Rekt Capital believe a breakout above the current consolidation pattern is still possible, others like Material Indicators warn of thinning support below $60,000. This suggests increased volatility could be on the horizon, especially as the monthly close approaches.
Bitcoin’s next move is anyone’s guess. Will positive economic data and a potential rate cut be enough to propel it past the $60,000 hurdle? Or will concerns about broader market trends and dwindling support trigger a sell-off? Only time will tell.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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