As Bitcoin navigates through economic stormy weather, it faces challenges symbolized by the $84,000 resistance threshold. The latest data from the U.S. on Personal Consumption Expenditures adds realism to the market euphoria.
The PCE Blow to Crypto Optimism
Despite declining inflation in the eurozone, February's PCE figures in the U.S. were a wake-up call for the market. The monthly inflation rise of 0.3% and annual increase of 2.5% met market expectations. However, the core PCE, the Fed's favorite indicator, exceeded forecasts. Some analysts predict stagflation by 2025—a mix of stagnation and rising prices—where Bitcoin appears vulnerable.
$84,000: A Psychological Support for Bitcoin
In this uncertain landscape, the $84,000 threshold becomes a crucial line of defense. Analyst Michaël van de Poppe suggests that a break below would likely test $78,000–80,000. However, some view the current volatility as a normal market cooling.
Future Catalysts and Correction Threat
Bitcoin continues to show an overall upward trend since January. Key events, such as spot ETFs and the upcoming halving, serve as potential catalysts. Yet, the market remains caught between hopes for a new all-time high and fears of a deep correction.
Bitcoin remains resilient amid economic challenges, but the $84,000 mark represents a critical test in its current trajectory. Balancing growth potential against risks, cryptocurrency continues to surprise analysts and investors.
