Bitcoin’s price performance remains stagnant as concerns grow over the strength of its $60,000 support level. Despite recent U.S. macroeconomic data, Bitcoin shows little reaction, leaving analysts to question its stability.
Bitcoin Stagnates as PCE Hits Three-Year Low
Data from Cointelegraph Markets Pro and TradingView indicated Bitcoin’s price hovering around the lower $61,000 range following the Wall Street opening. The Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s favored inflation measure, showed a 2.6% year-on-year increase—the lowest since March 2021.
According to trader Skew, personal income was slightly higher than expected, but personal spending showed signs of cooling. Despite this, Bitcoin and altcoins remained largely unaffected by the PCE data. Skew suggested that declining retail sales could trigger future market volatility, citing a 17% drop in Nike’s stock as an example.
The focus remains on a potential rate cut by the Federal Reserve in September. The CME Group’s FedWatch Tool indicated nearly a 68% chance of a rate cut, which could impact risk assets and cryptocurrencies.
Concerns Over Bitcoin’s $60K Support
Bitcoin’s price action continues to hover above $60,000, but traders remain cautious. Analyst Rekt Capital pointed out that Bitcoin’s daily close below the Bull Flag top indicates a potential need for further consolidation. However, a close above the top could signal a breakout.
Material Indicators raised concerns about thinning bid support below $60,000. Analysis of Binance’s BTC/USDT order book liquidity showed a block of bid liquidity moving up to $60,000, but support below this level is weakening, suggesting potential volatility approaching the monthly close.
As the market awaits further developments, the strength of Bitcoin’s $60,000 support remains under close watch, with analysts preparing for possible price fluctuations.
