Bitcoin
was rising slightly Tuesday after a spate of gains in recent days. With a major catalyst looming this week, the largest crypto has an opportunity to continue its winning streak if it can overcome key technical levels.
The price of Bitcoin has risen less than 1% over the past 24 hours to above $30,375. Bitcoin remains clear of the psychologically important $30,000 level which it breached last week for the first time since April, nearing $32,000 in the peak of recent trading. The technical outlook for Bitcoin looks positive in the near term after such strong gains that so far are holding, unlike the spike in April which was quickly undone.
“Bitcoin saw a decisive breakout,” said Katie Stockton, managing partner at technical research firm Fairlead Strategies. “The upturns support an eventual breakout above long-term resistance near $31,900 … Secondary resistance is near $35,900 … initial support is now at the 50-day moving average around $27,200.”
Indeed, Bitcoin is on a roll. With $32,000 in sight, clearing that level would pave the way to gains above $35,000 and near $36,000—levels not seen since May 2022.
This week holds at least one catalyst that could get Bitcoin there: the release of the personal-consumption expenditures index, which similarly will be in focus for the stock market and likely move the
Dow Jones Industrial Average
and
S&P 500.
While Bitcoin’s correlation to stocks has recently weakened—amid negative regulatory pressures and positive industry investments endogenous to crypto—the release of PCE data is a major macroeconomic catalyst that could move all risk-sensitive assets.
PCE is the Federal Reserve’s preferred measure of inflation. Investors will scrutinize the release Friday after the central bank held interest rates steady this month while cautioning that more inflation-fighting rate hikes could come after the first pause in more than a year of tightening financial conditions. A hot inflation print could signal more rate hikes, while signs of continued cooling in prices may spur optimism that the Fed will not have to be so aggressive.
Beyond Bitcoin,
Ether
—the second-largest crypto—was down less than 1% to $1,875. Smaller cryptos or altcoins were mixed, with
Cardano
losing 3% but
Polygon
just above flat. Memecoins were in the red, with
Dogecoin
down 1% and
Shiba Inu
shedding 2%.
Write to Jack Denton at [email protected]
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