Bitcoin at a Turning Point as Key Level Meets Core PCE Risk

Bitcoin has formed a new support base that could soon be put to the test with Thursday’s U.S. inflation report.

That floor sits near $59,000, which has recently limited downside and acted as a buffer against deeper losses.

In technical terms, support is a price zone where selling pressure tends to weaken as buyers step in. However, traders usually require multiple successful holds before treating a level as firmly established.

On Wednesday, bitcoin slid toward $59,000 during an intensifying sell-off before rebounding to around $61,000 overnight. At the time of writing, BTC is trading near $60,800, according to CoinDesk data. A similar pattern played out earlier this month on June 5, when a drop to that level was followed by a rally toward $67,000.

These repeated defenses have strengthened $59,000 as a key line in the sand — one bulls must protect to prevent a deeper pullback.

Attention now turns to the Personal Consumption Expenditures (PCE) report due Thursday at 8:30 ET. Headline PCE is expected to rise 4.1% year-over-year in May, the highest since April 2023 and well above the Federal Reserve’s 2% target, according to FactSet.

Core PCE, which excludes food and energy and is the Fed’s preferred gauge, is projected to come in between 3.3% and 3.4%, marking its highest level since October 2023.

A hotter-than-expected reading would reinforce concerns that inflation remains sticky, potentially strengthening expectations for further Fed tightening. That could lift the U.S. dollar — already near multi-month highs — and weigh on risk assets, including equities and cryptocurrencies.

In that scenario, $59,000 — rather than $60,000 — stands out as the critical level to monitor.

Alternatively, a softer reading could ease rate-hike fears, temper the dollar’s strength, and give bitcoin bulls room to build on the recent rebound from support.