Bitcoin (BTC) remained rangebound at the July 28 Wall Street open despite the release of better-than-expected United States inflation data. The Personal Consumption Expenditures (PCE) Index print came in below estimates, indicating that U.S. inflation was continuing to subside. This is significant because the PCE represents the Federal Reserve’s “preferred” inflation metric, as previously stated by Chair Jerome Powell. The latest data suggests that the Fed may finally have inflation under control.
Despite positive inflation data and recent events such as the Fed interest rate hike and the U.S. Q2 gross domestic product (GDP) estimate, Bitcoin has failed to experience significant volatility. The cryptocurrency has been trading between the $29,000 and $29,500 range, with traders still showing a preference for downside.
Over the past week, the $30,000 resistance level has remained intact, indicating a lack of bullish momentum. Prominent trader Crypto Tony has remained short on BTC below $29,600, expecting a further drop to $28,000. Fellow trader Daan Crypto Trades also anticipates a decline, emphasizing the loss of the local range focused on the $30,000 mark. He suggests that Bitcoin may reach the low $28,000s, but acknowledges the possibility of choppy price action along the way.
Meanwhile, Michaël van de Poppe, founder and CEO of trading firm Eight, has identified a “deviation” on the daily BTC/USD chart. This pattern, previously seen in February, was followed by an upward rebound. Van de Poppe speculates whether the thinner liquidity and increased potential for volatile movement during the weekend could ignite a “classic” comeback for Bitcoin.
It’s important to note that this analysis does not provide investment advice or recommendations. Investing in cryptocurrencies involves risk, and readers should conduct their own research before making any trading decisions.
In conclusion, Bitcoin remains rangebound despite positive U.S. inflation data. The cryptocurrency has failed to gain significant momentum and continues to face resistance at the $30,000 level. Traders are showing a preference for downside, with expectations of a further decline in price. However, some analysts speculate that Bitcoin may experience a rebound based on historical price patterns. As always, it’s crucial for investors to conduct their own research and consider their risk tolerance before making any trading decisions.