Bitcoin (BTC) aimed for five-week highs at Thursday’s Wall Street open as US inflation trends stayed on track.
Key points:
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US inflation data keeps crypto and stocks higher as BTC price action tests $74,000 again.
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Bitcoin traders diverge over the future of the move, with a “bearish retest” risking a new price collapse.
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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/TradingViewKnown 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 AnalysisWhile 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/TradingViewBTC 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.
BTC/USDT 12-hour chart. Source: Michaël van de Poppe/XOthers stayed on edge, with trader Daan Crypto Trades warning of a “large drop” if the current trading zone collapsed.
Trader Roman, already bearish, described the ongoing shift higher on BTC/USD as a “bearish retest.”
“RSI bear divs, bear price action (volume down + price up), & complete reset of MACD,” he summarized, referring to the relative strength index (RSI) and moving average convergence/divergence (MACD) price indicators on daily time frames.
BTC/USD one-day chart with RSI, MACD data. Source: Roman/XIn fresh updates on his Telegram channel on the day, meanwhile, independent analyst Filbfilb focused on open interest (OI).
Market observers, he said, should watch for OI to “ditch” — an event that would precede the end of the push higher.
Exchange Bitcoin OI (screenshot). Source: CoinGlass“No sign yet,” he acknowledged, noting that price was now interacting with its 50-day simple moving average (SMA).
As Cointelegraph reported, this was a key overhead resistance zone of interest during previous breakout attempts.
BTC/USD one-day chart with 50 SMA. Source: Cointelegraph/TradingViewThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Source: https://cointelegraph.com/news/bitcoin-price-eyes-74k-rematch-us-pce-inflation-boosts-crypto-stocks?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
