Bitcoin (BTC) disregarded the latest macro data from the United States on June 28 as concerns persisted regarding the strength of the $60,000 support level.
BTC/USD maintained its position around the lower $61,000 range following the opening of the Wall Street market, according to data from Cointelegraph Markets Pro and TradingView.
The most recent reading of the Personal Consumption Expenditures (PCE) Index, which serves as the Federal Reserve’s preferred inflation gauge, met expectations across the board. The core PCE, which showed a year-on-year reading of 2.6%, marked its lowest level since March 2021.
Popular trader Skew responded on X, stating that the PCE data came in as expected, with personal income slightly higher than anticipated but cooling personal spending. Skew described the numbers as “pretty good.”
While Bitcoin and other altcoins remained relatively unaffected by the PCE data, Skew noted that declining retail sales could potentially become a catalyst for volatility in the future, especially considering the 17% decline in the stock of clothing giant Nike. He added that the US market will still focus on the possibility of a rate cut in September and how it would impact various industries. Skew also pointed out that the headwinds for the crypto market are more apparent now compared to a year ago.
As previously reported by Cointelegraph, market sentiment currently favors the Federal Reserve cutting interest rates at the September meeting of the Federal Open Market Committee (FOMC), which would have significant implications for risk assets and the crypto market. The latest data from CME Group’s FedWatch Tool indicates a nearly 68% probability of a rate cut at the September FOMC meeting.
Turning to Bitcoin itself, traders observed little change in its circumstances as BTC/USD remained above the $60,000 mark. Popular trader and analyst Rekt Capital stated that Bitcoin closed below the top of the Bull Flag, indicating the possibility of further consolidation within the pattern.
However, trading resource Material Indicators expressed concern over the bid support below $60,000, noting that it was gradually diminishing. They commented on the BTC/USDT order book liquidity from Binance, stating that while there was a block of Bitcoin bid liquidity at $60,000, the support below it was becoming thinner.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.