Bitcoin price reaches $28.5K on PCE data as macro accumulation zone ends
Bitcoin (BTC) recovered recent losses at the March 31 Wall Street open as traders eyed a strong monthly close.
PCE cheers risk assets as with BTC price up $1000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD headed for $28,556 on Bitstamp after the opening bell, up $1,000 from the day’s low.
The fresh gains followed encouraging US macroeconomic data, with February’s personal consumption expenditures (PCE) index modestly beating expectations in some areas.
“We are making progress in the fight against inflation,” said an official statement from the White House about the PCE figures.
“Today’s report shows annual inflation down by almost 30 percent from this summer, against a backdrop of low unemployment and steady growth.”
More evidence of a slowdown in the US inflation rate…
The PCE price index moved down to 5%, the lowest level since September 2021. The peak was 7% in June 2022. pic.twitter.com/gR4pY1UVpf
— Charlie Bilello (@charliebilello) 31 March 2023
With inflation sticky but apparently not troubling markets, they appeared to be increasing their bets on Federal Reserve rate hikes that stalled in May, data from CME Group’s FedWatch Tool showed.
Risk assets therefore traded higher in anticipation. The S&P 500 and Nasdaq Composite Index were both up around 0.5% higher at the time of writing.
Related: US law enforcement agencies turn up the heat on crypto-related crime
Sentiment around Bitcoin was similarly upbeat, countering reservations among some traders who had warned of a significant pullback at or near the monthly close.
AND BOOM IT’S DONE, SPELL RIGHT OFF $27.5K
Now it’s time to slowly grind back towards highs, regain $29K and start acceleration for full dispatch pic.twitter.com/VDt6zn8lcA
— KALEO (@CryptoKaleo) 31 March 2023
To the upside, data from monitoring resource material indicators knew The bulk of the ask liquidity was $29,000 prior to the PCE release.
Popular trader Crypto Tony entertained the idea of Bitcoin to $30,000 in the short term, the price has held a key support level at $27,700.
Analytics account Skew in the meantime argued the spot buying pressure that must be maintained to maintain current levels above $28,000.
Bitcoin “leaves” buy dip territory
Moving to higher timeframes, optimism was no less evident.
Related: BTC Price at $22K? Watch these key levels in the Bitcoin monthly close
“Bitcoin Exits Another Accumulation Zone!” Caleb Franzen, senior market analyst at Cubic Analytics, announced on the day.
“Bitcoin’s 24-month Williams%R Oscillator is set to close above the ‘oversold’ threshold for March, which has marked an end to previous bear markets. Bullish long-term probabilities are improving, as long as we stay above the lower limit.”
Franzen had previously covered the evolving status quo of the Bitcoin Williams %R Oscillator across different timeframes as the 2023 uptrend began.
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