Bitcoin (BTC) Price Is Hovering Near Resistance Ahead of Core PCE Inflation Report

Technical analyst Kevin at Wolf of Wall Street is closely watching Bitcoin (BTC / USD) as it approaches a crucial resistance level and a key economic report that could decide the apex crypto’s next move.

After a 30% rally from recent lows, Bitcoin has hit a technical confluence at the $94,410–$95,581 range, where it has stalled.

“We’re at the golden pocket, a major volume node, and the point of control,” Kevin said in a recent podcast, highlighting the technical confluence.

A close above the bull market support band, which is made up of the 20-week simple moving average and 21-week exponential moving average, would add more bullish momentum.

However, he believes that some short-term consolidation or a pullback is possible before the next leg higher.

If Bitcoin does pull back, he sees $88,000–$90,000 as a strong support zone, which coincides with the 0.5 Fibonacci retracement level, key moving averages and a CME gap near $91,600, “which fill 90+% of the time,” adding further credibility to a potential revisit.

PCE Could Be Key

One factor that could influence Bitcoin’s direction is Wednesday’s Core PCE report, which is due at 8:30 AM ET.

The reading is expected to show a slowdown in inflation from 0.4% to 0.1%. A cooler-than-expected print could increase expectations for a potential rate cut by the Fed, a move that has historically favored Bitcoin and other crypto assets.

“If we get a positive core PCE index number and it’s much lower than expected, the market is going to start sniffing out rate cuts coming by the Fed,” Kevin said.

He added that monetary easing has been a key driver for crypto markets throughout this cycle.

Another factor to watch is the decline in Tether (USDT / USD) dominance, which has hit its bull market support band and 200-day EMA, a development that could favor cryptocurrencies.

However, negative money flow in USDT dominance suggests that any uptick might be short-lived, which could favor continued momentum for Bitcoin.