Bitcoin (BTC) sought a local bottom on March 28 while US inflation data came in higher than expected.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD heading to $85,500 at the Wall Street open before reversing.

Bitcoin (BTC) price threatened to post fresh lows on March 28 as hotter-than-expected US inflation data threatened risk appetite.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Bitcoin wobbles as PCE comes in hot

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD heading to $85,500 at the Wall Street open before reversing.

Down over 3% on the day, the pair saw lows of under $84,500 on Bitstamp, its lowest since March 23.

The February print of the US Personal Consumption Expenditures (PCE) Index subsequently showed inflation quickening — in contrast to the result from a month prior.

While the month-on-month and year-on-year PCE tally conformed to market forecasts at 0.3% and 2.5%, respectively, their core PCE equivalents were both 0.1% higher than anticipated.

“Core inflation is back on the rise,” trading resource The Kobeissi Letter concluded in part of a response on X, noting that the January numbers had also been revised higher.

Kobeissi argued that the current macroeconomic trajectory forms “the perfect recipe for stagflation in 2025.”

“March inflation data will be even more telling as the trade war rages on,” it wrote.

US PCE % change (screenshot). Source: Bureau of Economic Analysis

BTC price analysis sees ‘typical market cooldown’

Despite the threat of further BTC price weakness, traders were prepared for the unexpected in a volatile session.

“PCE data coming up so it's going to be a busy day in the markets I reckon,” popular trader Daan Crypto Trades thus wrote in part of his own X reaction.

Others maintained doubts over broader crypto market strength, agreeing that Bitcoin was not yet out of the woods despite holding above $80,000 for several weeks.

“Trend remains to be upwards for $BTC, but it starts to look slightly less good. Same for the broader markets, as we're getting close to the apex of the cycle (implied by RSI). Expect some sort of correction later today or tomorrow, I reckon. Let's see where we arrive at, but expecting a bounce at $82K-82.5K to set in,″ trader, analyst and entrepreneur Michaël van de Poppe stated to X followers.

BTC/USDT 12-hour chart with relative strength index (RSI) data. Source: Michaël van de Poppe/X

Fellow trader TheKingfisher likewise saw little chance of a full bullish comeback on short timeframes.

“BTC. While the short term price action may suggest a localized squeeze, the broader outlook doesn't yet support the narrative of a sustained bull run. Expecting sellers to defend the $85K-$86K zone on any attempts of advancing higher,suggesting a potential trading range to develop.”