Personal Consumption expenditure (PCE) came in high for the previous month, but in line with expectations. Stock market futures are down on the news and Bitcoin has not avoided the trend, down 1.5% on the day. Is the $BTC price going to continue to grind lower?
It seems that whenever the $BTC price rises and gets to a pivotal point, the next piece of failing economic data gets released, or oil, bond yields, or the dollar rise, and the $BTC price is knocked back down again. The latest PCE data came in high on Thursday, although it was nothing more than the market was expecting.
The S&P 500 is down a little over 0.5% on the day so far, with AI stocks getting hit once again. Gold and silver are plunging, and it now remains to be seen how far down the bottom will be for the metals. Will Bitcoin continue to follow them down?
Bitcoin follows the channel lower
Source: TradingView
As other financial sectors carry on their corrections, the $BTC price is generally holding up quite well, relatively speaking. That said, the price is still grinding down inside a descending channel. A quick rally through Tuesday and into Wednesday was snuffed out even more quickly early on Thursday, with the price coming down almost to the lows set over the weekend. However, a bounce is currently happening, and we will see over the rest of the day whether Bitcoin and the market in general can stage some sort of a recovery.
$79,500 becoming important support
Source: TradingView
The daily chart shows that the $BTC price came down to the $79,500 support and has bounced from there. It can be seen that this support is taking on importance, as recent candle tails also found support at this level.
The descending channel now appears to be more firmly established as the $BTC price makes its way down inside it. Just above is the 50-day simple moving average (SMA) which is forming resistance. The bulls will need to push the price back above in order to restart the rally.
Bull flag breakout can extend the rally
Source: TradingView
The weekly chart illustrates the bear flags of the bear market. While the current pattern is a bull flag, which is the opposite of the bear flags, the flag may have come down too far and thus might be invalidated. That said, the second of the bear flags did a similar thing, with its flag coming down to around 60% of the pole. If it was good enough in the bear market, it should be good enough in the bull market.
Therefore, this current bull flag structure should break to the upside. If it does, we are probably looking at the $BTC price going to at least the first of the overhead resistances at $90K. This would likely have the effect of turning the indicator lines back around in the Stochastic RSI and can extend the rally.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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