The latest US economic data reveals a heightened inflationary environment, impacting cryptocurrency market dynamics. The US Federal Reserve’s preferred inflation measure, the core Personal Consumption Expenditures (PCE) price index, rose to 2.8% year-on-year in June.
This marks the highest level since February, driven by sustained consumer spending and an accompanying increase in the overall PCE index. The persistent inflationary pressure introduces uncertainty regarding potential Federal Reserve policy shifts.
Against this backdrop, Bitcoin’s price is encountering significant technical barriers. Current resistance is concentrated in the $118,500 to $118,800 range. Conversely, strong support is identified around $116,300, reinforced by a concentration of liquidation buy orders near $117,000.
Given the uncertainty stemming from the inflation data, analysts at Bitunix emphasize a cautious approach. They recommend traders await a confirmed breakout above $118,800 or a decisive breakdown below $116,300 before taking significant positions.
The market exhibits bearish sentiment, reflected in substantial selling pressure encountered when Bitcoin approaches the $120,000 threshold. The rebound in June’s PCE figures compounds existing inflation worries, further amplified by anticipation of potential new tariff policies. This economic landscape continues to influence risk asset behavior, including Bitcoin.