Bitcoin news today highlights a critical moment for BTC as the U.S. Core PCE index jumps to 2.8%, reigniting inflation fears. With Bitcoin pressing toward the $118.8K resistance level, traders are on edge—will this be the breakout or another rejection?
U.S. Core PCE Inflation Data: What It Means for Bitcoin
The U.S. core Personal Consumption Expenditures (PCE) index rose to 2.8% year-over-year in June, exceeding expectations and marking the fastest pace since February. This resurgence in inflation has significant implications:
- Fed Policy: Higher inflation may delay rate cuts, impacting risk assets like Bitcoin.
- Market Sentiment: Traders are closely watching the jobs report for clues on economic health.
- Bitcoin Reaction: BTC often behaves as an inflation hedge, but short-term volatility is likely.
Bitcoin Price Analysis: Key Levels to Watch
Bitcoin is approaching the apex of a descending triangle, a make-or-break moment for traders. Here’s the breakdown:
| Level | Significance |
|---|---|
| $118,500–$118,800 | Critical resistance; breakout could signal bullish momentum. |
| $116,300 | Strong support; a breakdown here may trigger further declines. |
| $117,000 | Buy-side liquidity cluster, acting as near-term support. |
Why Traders Should Proceed with Caution
Bitunix analysts warn of heightened uncertainty due to:
- Potential tariff announcements from Donald Trump.
- Concentrated sell pressure near $120K.
- Low real income growth, hinting at economic slowdown risks.
Actionable Insight: Wait for a confirmed breakout above $118,800 or a drop below $116,300 before entering positions.
Conclusion: A Pivotal Moment for Bitcoin
With inflation data stirring the pot and Bitcoin at a technical crossroads, the next few days could define the market’s trajectory. Stay vigilant and trade wisely.
Frequently Asked Questions (FAQs)
1. How does the PCE index affect Bitcoin?
The PCE index reflects inflation trends, influencing Fed policy and investor sentiment toward Bitcoin as a hedge.
2. What happens if Bitcoin breaks $118.8K?
A breakout could attract bullish momentum, targeting higher resistance levels like $120K or beyond.
3. Is Bitcoin still an inflation hedge?
While Bitcoin has inflation-hedge properties, short-term price action often correlates with risk assets during Fed uncertainty.
4. Should I buy Bitcoin now?
Wait for a confirmed breakout or breakdown from the current triangle pattern to reduce risk.
