Bitcoin (BTC) remained choppy at the Wall Street open on April 28, while US macro data was in line with expectations.
Personal Consumption Expenses (PCE) does not offer “nothing to scandalize”
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair trading around $29,000 on Bitstamp.
The US personal consumption expenditures (PCE) index data, heralded as the macro event of the week, failed to catalyze performance as the numbers were broadly in line with what markets already they had discounted
“The trend is our friend, however the core remains tight for now – hovering around 4.6% since December”, answered financial commentator Tedtalksmacro, adding in Twitter comments that the latest figures were “Overall nothing to surprise the market”.
Thus, US equities showed little movement at the open, while for Bitcoin, Binance order book data showed modest bid liquidity moving towards the spot price, compressing potential volatility. .
Here’s how the #BTC order book is setup ahead of the report. #FireCharts pic.twitter.com/7sCpVP5mKU
— Material Indicators (@MI_Algos) April 28, 2023
Attention is increasingly focused on next week’s macroeconomic events, led by the Federal Reserve’s decision on interest rates.
As financial commentary source The Kobeissi Letter points out, the probabilities of a new rise in rates, already high, have only increased after the publication of the PCE.
“Interestingly, the odds of another 25 basis point rate hike in June are rising, up to 28%,” he pointed part of Twitter analysis.
“However, at least 2 rate cuts are expected this year. The Fed has yet to say it supports any rate cuts this year. Next week will be huge.”
According to CME Group’s FedWatch Tool, a 0.25% rate hike was 90% certain at the time of writing, up 5% from the previous day.
BTC price consolidates short-term range
Meanwhile, with little certainty in BTC price action, traders focused on the long-term trend.
Jelle, already confident that a major drop would be avoided, signaled a new trading range for the BTC/USD pair, with a possible “slow bleed” to just below the $29,000 mark.
#Bitcoin is establishing a new range here – seems like volatility will come down in the coming days.
Slow bleed towards 28.7 makes sense.
No need to get euphoric or scared, consolidation is a necessary part of market movement.
The long-term direction remains up, be patient. pic.twitter.com/rwil38uRkP
—Jelle (@CryptoJelleNL) April 28, 2023
Bitcoin is establishing a new range here – it looks like the volatility will drop in the next few days.
A slow indentation towards 28.7 makes sense.
There is no need to get euphoric or scared, consolidation is a necessary part of the market movement.
The long-term direction remains bullish, be patient.
Popular trader and analyst Rekt Capital further broadened its view, pointing to a possible repeat of historical uptrends to confirm the end of last year’s downtrend.
“Bitcoin has already broken its downtrend. Now it’s about continuing the new uptrend. The question is whether a retest is necessary or not,” tweeted on April 27.
“But history suggests that the medium to long-term outlook looks bullish.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.