BTC price shrugs off strong PCE data as Bitcoin traders eye $28K range
Bitcoin traders expect downside as BTC price offers a muted reaction to the Fed’s “preferred” inflation metric.
Bitcoin (BTC) stayed rangebound at the July 28 Wall Street open despite further United States inflation data beating expectations.
Fed’s “preferred” inflation metric points to waning pressure
Data from Cointelegraph Markets Pro and TradingView showed BTC price action getting only a modest boost from the Personal Consumption Expenditures (PCE) Index print.
This came in below estimates, hinting that U.S. inflation was continuing to subside and copying other data prints from the week.
BREAKING: US PCE Price Index comes in below expectations
Expected = 3.1%
Actual = 3.0%Inflation continues to wane as per this metric pic.twitter.com/61mrcBDON6
— Game of Trades (@GameofTrades_) July 28, 2023
Commenting on its implications, financial commentary resource The Kobeissi Letter noted that PCE represented the Federal Reserve’s “preferred” inflation metric, as previously revealed by Chair Jerome Powell.
“PCE inflation is now at its lowest since April 2021. The Fed may finally have inflation under control,” it suggested in part of social media analysis.
At this week's Fed's meeting, they said inflation data over the next 2 months is important.
PCE inflation is another sign of progress on the fight against inflation.
Is the Fed's rate hike cycle finally over?
Follow us @KobeissiLetter for real time analysis as this develops/
— The Kobeissi Letter (@KobeissiLetter) July 28, 2023
Much like the July 26 Fed interest rate hike and the July 27 U.S. Q2 GDP estimate, however, Bitcoin refused to turn on volatility, sticking between $29,000 and $29,500.
Bitcoin stays below bulls’ resistance target
Among traders, there was still appetite for BTC price downside, with $30,000 resistance now in place for over a week.
Related: Bitcoin price risks ‘major volatility’ as 10K BTC hits exchanges
Popular trader Crypto Tony confirmed that he remained short BTC below $29,600.
“I expect continuation down to $28,000 in time, but for sure we could range here for a little while before the drop,” he told Twitter followers on the day.
Fellow trader Daan Crypto Trades likewise placed emphasis on the loss of the local range focused on the $30,000 mark.
“With Bitcoin Rejecting from the previous range, I think it makes sense to prepare for low $28Ks,” he argued.
“Invalidation upon retaking $29.5K but there seems to be a lot of supply at that level and little spot bid to bring it up. Likely a choppy road on the way there.”
Michaël van de Poppe, founder and CEO of trading firm Eight, meanwhile spied what he called “deviation” on the daily BTC/USD chart — something previously occurring in February and which was followed by an upward rebound.
Deviation. #Bitcoin pic.twitter.com/AlX9dHOCCt
— Michaël van de Poppe (@CryptoMichNL) July 28, 2023
Van de Poppe additionally queried whether the weekend, with its thinner liquidity and more options for volatile movement, could produce a “classic” comeback.
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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.
