Bitcoin (BTC) shrugged off U.S. macro data on June 28 amid lingering doubts about the strength of $60,000 support.
Bitcoin is in recession as PCE hits 3-year low
Data from Cointelegraph Markets Pro and TradingView showed BTC prices hovering in the sub-$61,000 range after Wall Street opened.
The latest results for the Personal Consumption Expenditures (PCE) index, known as the Federal Reserve’s preferred measure of inflation, were broadly in line with expectations.
Core PCE was 2.6% compared to the same period last year, the lowest figure since March 2021.
“The PCE data became cooler, as expected. “Personal incomes are slightly higher than expected, but personal spending is decreasing.” In a reply to X (formerly Twitter), popular trader Skew described the numbers as “pretty good.”
Bitcoin and altcoins barely moved on the PCE, but Skew noted that falling retail sales could fuel future volatility, with shares of apparel giant Nike plunging 17%.
“US markets will still be focused on the September rate cut and the pricing of a Trump presidency and what that will look like/impact on the industry,” he said, adding that headwinds for cryptocurrencies are “lower here than a year ago.” “It’s pretty clear,” he added.
As Cointelegraph reported, market sentiment still expects the Federal Reserve to cut rates at its September Federal Open Market Committee (FOMC) meeting, a key liquidity event for risky assets and cryptocurrencies.
The odds of a same-day rate cut are nearly 68%, according to the latest data from CME Group’s FedWatch tool.
BTC Price Support Questioned
Turning to Bitcoin itself, traders saw little change in the situation, with BTC/USD hovering just above $60,000.
Related: Bitcoin Miners Selling Pressure ‘Weakening’ as BTC Withdrawals Drop 85%
Popular trader and analyst Rekt Capital shared with his X followers an explanatory chart, saying, “The Bitcoin daily closed below the Bull Flag top, so it is still condemned to further consolidation within the pattern.”
“However, the price is just one copy away from the daily close above the top of the Bull Flag, so a breakout is likely.”
But there was cause for concern for Material Indicators, a trading resource, which warned that support for bids below $60,000 was disappearing.
“FireCharts shows the Bitcoin bidding liquidity block moving up to $60,000, but the support ladder below it is thinning,” he commented on the BTC/USDT order book liquidity print on Binance, the largest global exchange.
“We expect more volatility through the month-end close.”
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