The price of Bitcoin (BTC) has rebounded past $84,000, signaling renewed bullish momentum as investors digest the latest Personal Consumption Expenditures (PCE) Index data. With inflationary concerns easing slightly, BTC is showing strength, sparking speculation about a potential rally toward the $90,000 mark.
Bitcoin Price Reacts to PCE Inflation Data
The PCE Price Index, a key inflation measure, rose 2.5% year-over-year (YoY) in January, while the Core PCE Index, which excludes food and energy, increased 2.6% YoY. Although inflation remains above the Federal Reserve’s 2% target, these figures were in line with market expectations, providing a degree of economic stability. The slight slowdown in inflation has boosted investor confidence, aiding Bitcoin’s price recovery.
Following the release of the PCE data, Bitcoin quickly reversed its recent downtrend, rising from a low of $78,248.91 to a high of $84,938.65 within hours. This sharp rebound has reignited bullish sentiment, with traders speculating on a potential move toward the $90,000 milestone.
Will Bitcoin Hit $90,000?
At the time of writing, Bitcoin is trading at $84,539.97, marking a 0.41% decline over the past 24 hours. Despite the minor dip, Bitcoin’s resurgence above the critical $80,000 level suggests strong buying pressure.
Technical indicators provide additional insights into BTC’s trajectory. The BTC/USD 4-hour chart shows a Relative Strength Index (RSI) of 41.94, indicating that Bitcoin has exited extreme oversold conditions. Just hours ago, the RSI dropped to 18.64, signaling significant bearish pressure before the rebound.
Institutional Demand Fuels Bullish Momentum
The bullish outlook for Bitcoin is further supported by institutional interest. Asset management giant BlackRock has incorporated Bitcoin ETFs into its model portfolios, reinforcing confidence in BTC’s long-term viability. Additionally, MicroStrategy and other major institutional holders continue to accumulate Bitcoin, reducing selling pressure.
Market analysts suggest that Bitcoin’s recent dip was a healthy retracement in an ongoing bull cycle. If BTC maintains its upward trajectory, $90,000 could be the next major resistance level in the coming days.
Bitcoin’s swift rebound following the PCE inflation report highlights its resilience amid macroeconomic uncertainties. With institutional adoption rising and market sentiment improving, a rally to $90,000 remains a strong possibility. However, traders should stay cautious, as volatility remains a defining characteristic of Bitcoin’s price movements.
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.
About The Author
