US Inflation Rose 2.7%. Bitcoin Reacted with a Slight Growth
The US released PCE data, which is closely tracked by the Federal Reserve when deciding whether to raise interest rates and is considered a leading indicator of inflation. Bitcoin reacted with a slight increase.
Crypto market participants this week were expecting PCE data, which is an important indicator for the Fed and gives an idea of the current state of the U.S. economy. According to the Bureau of Economic Analysis, PCE inflation for March increased by 0.3% on a monthly basis, which coincided with market expectations.
On a year-on-year basis, PCE inflation rose 2.7% after increasing 2.5% in February and exceeded market expectations of 2.6%. This data followed after this week's US GDP data release failed to satisfy the market and cryptocurrency prices fell slightly.
The data only increased investor concerns about the Fed's plans to delay interest rate cuts. Nevertheless, the main cryptocurrency reacted with a slight increase, at the moment rising 2% from $63,248 to $65,103.
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At the time of writing, Bitcoin managed to approach the resistance level of $65,500, but the bulls failed to hold the asset, and the price began to fall. Now, Bitcoin is heading towards the resistance level of $64,500. However, an important level is still $65,500, a break above which could send the asset to the resistance levels of $66,200, $67,000 and $68,800.
On the negative side, the price could fall to support levels of $63,750, $62,750 and $61,200 in the near term.
This is not a one hundred percent statement. The cryptocurrency market is very volatile. Investors should exercise caution when making decisions.
