The price of Bitcoin (BTC) has made an important pivot in the past hour, with bullish sentiments returning to the market. At the time of writing, the coin has breached the resistance level at $84,000 as investors digest the United States Personal Consumption Expenditures (PCE) data. As an important inflationary gauge, the PCE data has signaled that inflation is not much of a concern as investors react to it.
Bitcoin Price and PCE Influence
According to the Bureau of Economic Analysis, the PCE Price Index for January increased by 2.5% year-on-year (YoY). As a complement, the Core PCE Price Index (besides food and energy) jumped by 2.6% YoY. Despite the minor inflationary outlook, the readings are not far from projections before the release.
The inflation readings are down compared to the Core PCE Index of 2.9% recorded in December. From December to January, the data showed that inflation climbed by just 0.3%, which aligns with expectations.
These PCE Index readings have calmed the storm after intense macroeconomic turmoil fueled the Bitcoin price slump. The figures show a slight slowdown in inflation. However, the Federal Reserve still has work to do. The reading is still far from the 2% annual reading it always targets, so it might need to revise its interest rate policies.
BTC Price and the $90,000 Play
At the time of writing, the price of Bitcoin was changing hands for $84,171.62, down by 0.41% in 24 hours. Over this period, the coin dropped from a low of $78,248.91 to a high of $84,938.65 before correcting slightly to its current level.
An earlier BTC price analysis shows that the coin was bracing up for a drop to $75,000 after it dropped below $80,000 on February 27. The unexpected rebound has triggered new sentiment around the coin, with analysts debating whether the coin has reached the bottom.
Currently, the BTC/USD 4H chart shows that the coin’s Relative Strength Index (RSI) is pegged at 41.94. However, it dropped as low as 18.64 hours ago, a sign of how oversold it is. With this rebound, chances are high the coin may reclaim its highest level at $90,000 soon.
Rebound Catalysts Are Evident
Amid the market rout, the potential for Bitcoin price rebound remains very high. As reported earlier by CoinGape, BlackRock added Bitcoin ETF to its model portfolios, a sign of improvement in sentiment.
Top institutional buyers like MicroStrategy also remain keen on HODLing, solidifying the demand base for the coin. With analysts claiming that the retracement is normal in a bull cycle, whether the BTC price will cross the $90,000 level in the coming days remains to be seen.
The post Bitcoin Price Rebounds After PCE Data, Is $90,000 The Next Stop? appeared first on CoinGape.
