- Bitcoin and crypto prices fell as the market reacted to the January PCE data.
- The Fed’s favorite inflation measure came in hot, spooking markets, with the S&P 500 down nearly 1.4% and the Dow down nearly 400 points.
- Crypto analyst Rect Capital says that as long as bulls hold support above $23,000, BTC price remains in a positive zone.
bitcoin price It continues to struggle after rejection from the $25k resistance, but today’s decline comes as the market reacts to hotly-anticipated personal consumer spending (PCE) data.
As stocks tumbled heavily on Friday, with the S&P 500 down nearly 1.5% and the Dow Jones Industrial Average shedding 400 points, BTC price dropped below $24k to hit a low of $23,130 on major exchanges.
Crypto Falls On Wall Street CPE Data
CPE is the Federal Reserve’s favorite inflation measure and sentiment has turned on the latest data release as investor hesitancy recedes.
The Fed uses the CPE price index to measure how fast prices have risen in the US economy, and data shows prices rose 0.6% in January and 5.4% year-over-year. Core CPE also warmed to 4.7% versus the forecast of 4.3%, to suggest that inflation remains an issue.
,Inflation remains very high. We’re going to do more to get 2% back,” said Loretta Mester, president of the Cleveland Federal Reserve.I See a little more momentum in the inflation measures than my colleagues. We have to get interest rates above 5% and keep it there for some timehe added during a Interview with CNBC.
bitcoin price outlook
The reaction on Wall Street also spilled over into the crypto market, with BTC price falling below a key support line recently highlighted as the “Confluence Support Area”. Uncertainty surrounding Fed interest rates sent most stocks scorching in early trading, a scenario also replicated in crypto with Ethereum plunging below $1,600.
As for the short-term price outlook for Bitcoin, popular crypto trader and analyst Rect Capital says that the bulls may remain in control if BTC sustains above $23k. However, a bearish outlook will materialize if the price breaks below.
,BTC weekly retest of the confluence area which is the lower high and monthly range high resistance is now in progress. Price needs to hold here for the retest to be successful. However, a weekly close below this area would be a bearish signal.said the analyst.
A failed #B T c Weekly retest of ~$23400 as support would mean price remains inside monthly macro range
Let’s see how monthly closes
Close above 1M ~$23400 -> Potential range breakout
Close Down 1M -> $BTC stays in range and can go down in range#crypto #bitcoin pic.twitter.com/xTAqH7pVlm
— Rekt Capital (@rektcapital) February 24, 2023