Bitcoin (BTC) stayed rangebound at the July 28 Wall Street open despite further United States inflation data beating expectations.
BTC/USD 1-hour chart. Source: TradingView
Fed’s “preferred” inflation metric points to waning pressure
Data from Cointelegraph Markets Pro and TradingView showed BTC price action getting only a modest boost from the Personal Consumption Expenditures (PCE) Index print.
This came in below estimates, hinting that U.S. inflation was continuing to subside and copying other data prints from the week.
BREAKING: US PCE Price Index comes in below expectations
Expected = 3.1%
Actual = 3.0%
Inflation continues to wane as per this metric pic.twitter.com/61mrcBDON6
— Game of Trades (@GameofTrades_) July 28, 2023
Addressing its implications, financial commentary resource The Kobeissi Letter noted that PCE represented the Federal Reserve’s “preferred” inflation metric, as previously revealed by Chair Jerome Powell.
“PCE inflation is now at its lowest since April 2021. The Fed may finally have inflation under control,” it suggested in part of its analysis on social media.
At this week’s Fed’s meeting, they said inflation data over the next 2 months is important.
PCE inflation is another sign of progress on the fight against inflation.
Is the Fed’s rate hike cycle finally over?
Follow us @KobeissiLetter for real time analysis as this develops/
— The Kobeissi Letter (@KobeissiLetter) July 28, 2023
However, much like the July 26 Fed interest rate hike and the July 27 U.S. Q2 gross domestic product (GDP) estimate, Bitcoin refused to turn on volatility, sticking between $29,000 and $29,500.
Bitcoin stays below bulls’ resistance target
Among traders, there was still an appetite for BTC price downside, with the $30,000 resistance now in place for over a week.
Related: Bitcoin price risks ‘major volatility’ as 10K BTC hits exchanges
Popular trader Crypto Tony confirmed that he remained short BTC below $29,600.
“I expect continuation down to $28,000 in time, but for sure we could range here for a little while before the drop,” he told Twitter (now known as X) followers on the day.
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