Bitcoin (BTC) remained relatively stable with a ticker down at $29,311 during the Wall Street open on July 28, despite the release of United States inflation data that surpassed expectations.
However, the data on the Personal Consumption Expenditures (PCE) Index, which is considered the Federal Reserve’s preferred metric for inflation, indicated that U.S. inflation was continuing to decrease.
This development led financial analysts, such as The Kobeissi Letter, to speculate that the Fed might finally have inflation under control, as PCE inflation was at its lowest since April 2021.
Despite the significant economic indicators, Bitcoin’s price action saw only a modest boost and did not display significant volatility. Instead, it remained within a range of $29,000 to $29,500.
Traders’ sentiment suggested that there was still a preference for the downside, as the resistance target of $30,000 had been holding for over a week.
Notably, popular trader Crypto Tony expressed his anticipation for BTC to continue moving down to $28,000, although he acknowledged the possibility of a brief consolidation phase before the drop.
Fellow trader Daan Crypto Trades also emphasized the loss of the local range centered around the $30,000 level and suggested preparing for a potential drop to the low $28Ks.
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However, he cautioned that if BTC managed to retake the $29.5K level, the bearish scenario could be invalidated.
On the other hand, Michaël van de Poppe, the founder and CEO of trading firm Eight, identified a “deviation” on the daily BTC/USD chart, similar to a previous occurrence in February, which was followed by an upward rebound.
He also questioned whether the weekend’s thinner liquidity and increased potential for volatile movements could trigger a “classic” comeback for Bitcoin.
In conclusion, despite the release of positive U.S. inflation data, Bitcoin’s price remained relatively stable and did not show significant volatility.
Traders’ sentiment suggested a preference for the downside, with the $30,000 resistance level still holding.
However, some analysts remained cautious about the potential for a bullish rebound based on technical indicators and historical patterns.
As the weekend approached, market participants kept a close eye on the potential for increased volatility in the cryptocurrency market.
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