Bitcoin is experiencing a small rise in price, having seen significant gains in recent times. The largest cryptocurrency is expected to continue its winning streak if it can surpass critical technical levels, with a significant catalyst on the horizon.
For the last 24 hours, Bitcoin has gained less than 1%, surpassing $30,375. The cryptocurrency is holding steady above the vital psychological milestone of $30,000, which it had surpassed for the first time since April last week, reaching peak trading levels of nearly $32,000. However, unlike the short-lived surge in April, Bitcoin’s strong gains have held firm this time around, indicating a relatively positive outlook for the near future.
According to Katie Stockton, Managing Partner at Fairlead Strategies, “Bitcoin saw a decisive breakout. The upturns support an eventual breakout above long-term resistance near $31,900…Secondary resistance is near $35,900…initial support is now at the 50-day moving average around $27,200.”
Bitcoin appears to be unstoppable at the moment. Currently at $32,000, breaking past this critical level would pave the way for gains above $35,000 and near $36,000- levels that haven’t been seen since May 2022.
Bitcoin Faces Catalyst in Upcoming PCE Release
As Bitcoin continues on its journey to gain more stability, analysts suggest that one huge catalyst could be the upcoming Personal Consumption Expenditures (PCE) index release. The stock market is rooting for this event as well, and it is expected to have positive effects on Dow Jones Industrial Average and S&P 500.
As of late, pressure from regulations and internal investment sources have caused Bitcoin’s correlation to stocks to weaken. However, now that the PCE data is coming, it could be a major macroeconomic event that may affect all risk-sensitive assets.
The PCE index is the Federal Reserve’s preferred way of measuring inflation. Investors will be taking a closer look at the index after the central bank chose to keep interest rates stable while warning that inflation-fighting rate hikes could happen. A hot inflation print in the PCE release could signal more rate hikes as a response, while continued cooling in prices could mean that the Fed won’t have to be too assertive.
Currently, Ether is down less than 1% to $1,875, and smaller cryptocurrencies like Cardano sees a drop of 3% while Polygon remains above flat. Memecoins like Dogecoin and Shiba Inu experienced loses of 1% and 2%, respectively.
While the future of Bitcoin is uncertain at this point, it still shows promise in the global economy. Investors are eagerly awaiting the results of the PCE release to see what new developments will take place.