Bitcoin (BTC) remained relatively unfazed by the latest U.S. macro data, including a three-year low in the Personal Consumption Expenditures (PCE) Index, which is considered the Fed’s preferred inflation gauge. However, analysts are concerned about the weakening support for BTC below $60,000. Despite the PCE data coming in cooler than expected, traders are still anticipating a rate cut by the Federal Reserve in September. This anticipation of a rate cut, a key event for risk assets and crypto, is contributing to market sentiment favoring a potential increase in liquidity. While some analysts see a potential breakout from the current Bull Flag pattern, others warn of thinning bid support below $60,000. The declining liquidity below $60,000 could lead to increased volatility in the coming days, especially as the monthly close approaches.
Key Points:
Bitcoin remained unfazed by the latest U.S. macro data, including a three-year low in the PCE Index, the Fed’s preferred inflation gauge.
Analysts are concerned about the weakening support for BTC below $60,000, as bid liquidity is thinning.
Traders are anticipating a rate cut by the Federal Reserve in September, which could lead to increased liquidity for risk assets and crypto.
Some analysts see a potential breakout from the current Bull Flag pattern, while others warn of increased volatility due to the thinning support below $60,000.
The declining liquidity below $60,000 could lead to increased volatility in the coming days, especially as the monthly close approaches.
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