Bitcoin pared recent losses at the Wall Street open on March 31, as traders looked for a strong monthly close.
BTC/USD 1-hour chart. Source: TradingView
PCE Stimulates BTC Price Rally Over $1,000
TradingView data shows that BTC/USD rose to $28,613 after the opening bell, up more than $1,000 from the session low.
The fresh gains came on the back of encouraging macroeconomic data from the US, with February’s personal consumption expenditures (PCE) falling short of expectations in several areas.
“We have made progress in the fight against inflation,” the White House said in an official statement on the PCE data. “Today’s report shows that annual inflation is almost 30 percent lower than it was this summer, amid low unemployment and steady growth.”
More evidence of falling U.S. inflation…
The PCE price index fell to 5%, the lowest level since September 2021. A peak of 7% will be reached in June 2022. pic.twitter.com/gR4pY1UVpf
— Charlie Billello (@charliebilello) March 31, 2023
Bets are growing that the Fed will stop raising interest rates in May as inflation doesn’t appear to be troubling markets for now, according to CME Group’s FedWatch Instrument data.
As a result, risky assets are trading at higher than expected prices. At press time, the S&P 500 and Nasdaq Composite were both up about 0.5%.
Fed target rate probability chart.Source: CME Group
Sentiment surrounding bitcoin was equally buoyant, while some traders were muted, warning of a sharp pullback at or near the monthly close.
AND HOW IT DID BOOM Immediate bounce off $27.5K
Now is the time to slowly get back to the highs, reclaim $29,000 and start accelerating for a full send pic.twitter.com/VDt6zn8lcA
— KALEO (@CryptoKaleo) March 31, 2023
On the other hand, data from monitoring resource materials indicators showed that most liquidity inquiries were at $29,000 ahead of the release of the PCE data.
BTC/USD order book data (Binance).Source: Materials Indicators/Twitter
Cryptocurrency trader Toney suggested that Bitcoin could hit $30,000 in the short term if the price holds key support at $27,700.
Analyst account Skew believes that spot buying pressure needs to be maintained to keep prices above $28,000.
Moving to higher time frames, optimism is equally evident.
“Bitcoin is leaving another accumulation zone!” said Caleb Franzen, senior market analyst at Cubic Analytics. “Bitcoin’s 24-month Williams %R oscillator will close above the ‘oversold’ threshold in March, marking the end of the previous bear market. As long as we remain above the lower band, the bullish odds increase.”
With the 2023 uptrend looming, Franzen previously spoke about the development of the Williams %R Oscillator on different time frames.
Source: Caleb Franzen/Twitter
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As reported by Cointelegraph
