BTC price beats US PCE inflation as buyers enter $42K of Bitcoin
Bitcoin (BTC) failed to respond to positive inflation on December 22 as US macro data boosted interest rate bets.
After the PCE publication, the odds of a January crash are close to 15%
Data from Cointelegraph Markets Pro and TradingView tracked muted BTC price movements during the week's final Wall Street open.
Despite a crash above $44,000 earlier in the week, regional resistance remains firmly in place for Bitcoin ahead of the US holiday break.
The November publication of the personal consumption expenditures (PCE) index, known as the Federal Reserve's “preferred” measure of inflation, beat expectations.
The final number came in at 2.6% versus the expected 2.8%, which shows the impact of monetary policy on rising inflation.
Markets responded in stride, raising the odds of a rate cut next month to around 15%, according to data from the CME Group's FedWatch tool.
“This is the lowest PCE inflation number since May 2021. Another sign that the Fed has welcomed it,” marketing resource Kobeisi's letter wrote in part in X's (formerly Twitter) comment.
Kobeisi added that the November macro releases unanimously stuck to the declining inflation narrative.
“All the November inflation data has moved in the right direction,” he continued.
This reinforced market expectations of a Fed rate cut in 2024. Still, the question is how many rates will be cut and when they will start.
The decline of the dollar is not enough to side with Bitcoin.
BTC's price action offered little hope for bulls despite encouraging macro signs and weaker US dollar, which fell to its lowest since late July.
Related: Bitcoin trader with $12K BTC price target warns of ‘weeks' coming to crypto
Behind the scenes, popular trader Skew revealed that the auction liquidity on the largest international exchange Binance is increasing, adding $41,000 and $42,000 as support.
$BTC Binance Spot Limit Spot buyer snapping here but not enough to push price up yet.
Receivers must again flip to the selling position and then limit the bid ~ key recipe for high
Still a heavy offer around $45,000
Big spot bid now moved to $42K and other spot bids have moved… pic.twitter.com/vNlaI4NWnD
— Skew Δ (@52kskew) December 22, 2023
In his latest trading tip, fellow crypto Tony suggested a $44,300 line in the sand for BTC/US dollar to consider long positions.
$BTC / $USD – Update
Return $44,300 and then you're in a safe long position. Until then.. Trust Tony pic.twitter.com/A7NWwYWICs
— CryptoTony (@CryptoTony__) December 22, 2023
Others have suggested that Bitcoin needs to crush its current 2023 highs.
“Bitcoin has formed a quadrangle consolidation,” trader and analyst Alan Tardigrade told X subscribers earlier in the day.
“If it breaks the upper resistance line, the measured target could reach $48k.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
