Bitcoin Faces Possible Crash to $70K Amid US PCE Inflation Data Uncertainty

Bitcoin is under pressure again, down below $86,000. As of today, BTC is down 1.4% at $85,837.93 after reaching a 24 hour high of $87,702.17. Volume is down 2.4% to $25.8 billion.

Some are still predicting a recovery to $88,000 by the end of the month. But Bitcoin Futures Open Interest is down 1.5% and traders are getting risk averse. The market is waiting for the US Personal Consumption Expenditures (PCE) inflation data which will shape the Fed’s monetary policy.

Peter Brandt Warns of Potential Bitcoin Crash to $70K

Veteran trader Peter Brandt is warning of a Bitcoin crash. He responded to an HTL-NL market analysis which showed a possible BTC drop to $76,700 or $70,000. Brandt said “This is not an unreasonable expectation” and the selling pressure will increase in the short term.

Bitcoin is struggling to stay bullish and sentiment is turning bearish in the broader crypto market. Historical corrections have followed similar warnings from industry experts so this is a key point to watch for traders.

Indicators Suggesting a Possible BTC Drop:

• Bitcoin Futures Open Interest down -1.5%

• Volume down -2.4%

• Market uncertainty ahead of US inflation data

• Selling pressure on the charts

Will Bitcoin Recover After the US PCE Inflation Report?

The US PCE inflation data will be a major catalyst for Bitcoin’s next move. If inflation is in line with expectations it will boost investor confidence and support a BTC rebound. A decline in inflation will push the Fed to a more dovish stance and interest rate cuts are historically bullish for Bitcoin.Javon Marks is still bullish on Bitcoin long term.

He compared the previous rally from $19,000 to $67,543 and said history could repeat itself and take us to $116,600-$118,800. Michael van de Poppe is also seeing buying pressure and said any dips are being absorbed by the market.

But for Bitcoin to get back to bullish mode it needs to break the $90,000 resistance. Until then traders are cautious as macro is still in control of the market.

With the crypto market at a crossroads, all eyes are on the US inflation data. Will Bitcoin defy bearish predictions, or is a drop to $70K inevitable? The coming days will be crucial for BTC’s trajectory.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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