Bitcoin approached $74,000, reaching its highest levels in several weeks, following the release of January US inflation data. The Personal Consumption Expenditures Index matched expectations, providing stability for risk assets. Analysts noted Bitcoin’s price finally crossed its key 50-day moving average, though traders expressed divergent views on whether the move signaled continued momentum or risked a new price collapse.
Bitcoin tested the $74,000 level again as US inflation trends stayed on track for Thursday’s Wall Street open. US inflation data kept crypto and stocks higher, with Bitcoin price action finally recrossing its 50-day moving average trend line.
Data from TradingView confirmed new local BTC price highs near $74,000 following the January print of the Personal Consumption Expenditures Index. Known as the Federal Reserve’s preferred inflation gauge, January PCE matched market expectations, as shown in data from the Bureau of Economic Analysis.
While still at its highest levels since late 2023, the result appeared to soothe risk assets, with US stocks up around 0.5% at the time of writing. In doing so, both risk assets and crypto began to diverge from a positive correlation to oil seen over the week.
Commenting on Bitcoin, crypto trader Michaël van de Poppe was cautiously upbeat on the outlook. “Resistance zone for me is between $76-79K for Bitcoin,” he wrote in a post on X. Others stayed on edge, with trader Daan Crypto Trades warning of a large drop if the current trading zone collapsed.
Trader Roman, already bearish, described the ongoing shift higher on BTC/USD as a bearish retest. Independent analyst Filbfilb focused on open interest in fresh updates on his Telegram channel. Market observers, he said, should watch for OI to ditch, an event that would precede the end of the push higher.
