Bitcoin (BTC) held lower at the Wall Street open on Feb. 24 as US macroeconomic data showed inflation receding.
The PCE raises new doubts about inflation
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as it traded in a tight range around $23,800.
The previous day, the pair tried to recapture $24,500 but ultimately failed as resistance kept gains in check.
Nevertheless, bitcoin reacted subduedly to the latest release of the US Personal Consumption Expenditure (PCE) Index, which, at 4.7% vs. 4.3% expected, suggests inflation is not declining as quickly as expected.
For popular commentator Tedtalksmacro, this was reason for the Federal Reserve to consider a further interest rate hike at its March meeting, a potential headwind for risky assets, including cryptocurrencies.
“Here comes the 50bps March speculation”, argument in part from a reaction on Twitter.
Focusing on the BTC/USD pair itself, Cointelegraph contributor Michaël van de Poppe meanwhile remained bullish on the near-term outlook.
“Markets continue to have a regular correction within an uptrend,” wrote next to a chart with significant levels highlighted.
“As long as Bitcoin stays above $22,000, this would be enough to expect a continuation towards $25,000 or higher.”
The Material Indicators monitoring resource He showed Binance order book resistance tiered above spot price, with further support at $23,000.
Popular trader and analyst Rekt Capital also showed that the BTC/USD pair was trying to hold a recently changed trend line to support on intraday time frames.
“There has not yet been a third test in a row, but BTC is still holding above the resistance of the Lower Peak”, tweeted.
“If this price stability continues here, one could argue that price is slowing on sell-side momentum against this new Minor Peak support.”
US dollar challenges 2023 high
US stocks suffered a steeper drop in PCE printing, with the S&P 500 and Nasdaq Composite Index falling 1.4% and 1.7%, respectively, at the time of writing.
The US Dollar Index (DXY) got a welcome boost, rising to 105.3 on the day, its highest level since January 6.
DXY weakness had characterized much of the cryptocurrency rally in January, which reversed in February in line with the increased difficulty facing Bitcoin bulls eager to hang on to gains above 50%.
“The DXY US Dollar Index moves further into the cloud of the 200-day moving average”, wrote Caleb Franzen, senior market analyst at Cubic Analytics, in part of a Twitter roundup.
Franzen added that DXY “could see more upside within this range, but the entire range is potential resistance.”
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