Bitcoin price eyes $74K rematch as US PCE inflation boosts crypto, stocks

Bitcoin bulls squeezed the market toward $74,000 again as promising US inflation data buoyed risk assets, but BTC price forecasts stayed mixed.

Bitcoin (BTC) aimed for five-week highs at Thursday’s Wall Street open as US inflation trends stayed on track.

US inflation data keeps crypto and stocks higher as BTC price action tests $74,000 again.

Bitcoin traders diverge over the future of the move, with a “bearish retest” risking a new price collapse.

BTC/USD finally recrosses its 50-day moving average trend line.

Data from TradingView confirmed new local BTC price highs near $74,000 following the January print of the Personal Consumption Expenditures (PCE) Index.

Known 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.

While 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.

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. 

Others stayed on edge, with trader Daan Crypto Trades warning of a “large drop” if the current trading zone collapsed.

$BTC If this level breaks, it's time for a large drop. pic.twitter.com/9A6DaICCs3

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.

In 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.

“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.

This 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: CoinTelegraph