Bitcoin has been steadily rising in recent days and it looks set to continue with a major catalyst due this week. Currently valued at just over $30,375, Bitcoin has risen by less than 1% over the past 24 hours. The crypto remains above the psychologically important $30,000 level that it recently breached for the first time since April.
Despite its recent gains, Bitcoin looks poised for even more growth. The technical outlook is positive, particularly in the near term, as the gains are currently holding steady. In contrast to the spike in April, which was quickly undone, the recent rise presents a decisive breakout.
Katie Stockton, managing partner at technical research firm Fairlead Strategies, highlights that “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.”
If Bitcoin clears the $32,000 level, it will pave the way for further gains above $35,000 and near $36,000—levels not seen since May of 2022.
Bitcoin and the PCE Index: A Macro Catalyst to Move all Risk-Sensitive Assets
Bitcoin has had a rollercoaster ride in the past few months, with the cryptocurrency facing both negative regulatory pressures and positive industry investments endogenous to crypto. This week, the release of the personal-consumption expenditures (PCE) index may be a major macroeconomic catalyst that could move all risk-sensitive assets, including Bitcoin.
PCE is considered as the Federal Reserve’s preferred measure of inflation, and investors are expected to scrutinize its release on Friday. After the central bank held interest rates steady this month, while cautioning about the possibility of more inflation-fighting rate hikes, a hot inflation print could signal more rate hikes to come. On the other hand, signs of continued cooling in prices could spur optimism that the Fed will not have to take such aggressive measures.
While Bitcoin’s correlation to stocks has weakened recently, this catalyst could potentially change that. Lately, Bitcoin has been hovering below the $40,000 mark. However, if the PCE data comes out positively, it may give the cryptocurrency the push it needs to soar above that threshold.
Beyond Bitcoin, Ether—the second-largest cryptocurrency—is down less than 1% at $1,875. Smaller cryptos or altcoins were mixed, with Cardano losing 3%, but Polygon just above flat. Memecoins were in the red, with Dogecoin down 1% and Shiba Inu shedding 2%.
As we approach the end of the week, all eyes are on the PCE data and whether it will provide enough ammunition for Bitcoin to make a comeback.
Conclusion
Analysts predict that the PCE data release could potentially be a significant macro catalyst for all risk-sensitive assets, including Bitcoin. With Bitcoin’s correlation to stocks dwindling recently due to regulatory pressures, positive movements in the stock market may give the cryptocurrency the push it needs to rise above $40,000. Investors are eagerly awaiting the PCE data release on Friday to find out which direction Bitcoin and other cryptocurrencies’ values will take.
