Bitcoin’s Wild Ride: Will It Soar to $90,000 or Just Take a Nap? 🚀😴

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Ah, the price of Bitcoin (BTC), that capricious creature of the digital realm, has performed a most theatrical pirouette in the past hour! Bullish sentiments have returned, as if summoned by a magician’s wand. At this very moment, the coin has breached the resistance level at $84,000, much to the delight of investors who are now digesting the United States Personal Consumption Expenditures (PCE) data like a fine caviar. As an inflationary oracle, the PCE data has whispered sweet nothings, suggesting that inflation is not the monster under the bed that we once feared.

Bitcoin Price and PCE Influence

According to the Bureau of Economic Analysis, the PCE Price Index for January has increased by a modest 2.5% year-on-year (YoY). Meanwhile, the Core PCE Price Index (excluding food and energy, because who needs those essentials anyway?) has jumped by 2.6% YoY. Despite this minor inflationary outlook, the readings are not far from the predictions made by the soothsayers before the release.

These inflation readings are a tad lower than the Core PCE Index of 2.9% recorded in December. From December to January, inflation climbed by a mere 0.3%, which aligns perfectly with the expectations of those who enjoy a good plot twist.

These PCE Index readings have calmed the tempest that raged after the macroeconomic turmoil sent Bitcoin’s price tumbling down like a lead balloon. The figures indicate a slight slowdown in inflation, but the Federal Reserve still has its work cut out. The reading is still far from the coveted 2% annual target, so it might need to revise its interest rate policies—again!

BTC Price and the $90,000 Play

As I pen these words, the price of Bitcoin is changing hands for $84,171.62, down by a mere 0.41% in the last 24 hours. During this period, the coin has danced from a low of $78,248.91 to a high of $84,938.65 before correcting itself, as if it were a wayward child learning to behave.

Earlier analyses suggested that the coin was bracing for a drop to $75,000 after it dipped below $80,000 on February 27. But lo and behold! The unexpected rebound has sparked a new wave of sentiment, with analysts debating whether the coin has truly hit rock bottom or merely taken a leisurely stroll.

Currently, the BTC/USD 4H chart reveals that the coin’s Relative Strength Index (RSI) is pegged at 41.94. However, it plummeted as low as 18.64 mere hours ago, a clear sign of how oversold it has become. With this rebound, the chances are high that the coin may soon reclaim its lofty heights at $90,000—if it doesn’t trip over its own feet first!

Rebound Catalysts Are Evident

Amid the market chaos, the potential for a Bitcoin price rebound remains as high as a kite on a windy day. As reported earlier by CoinGape, BlackRock has added Bitcoin ETF to its model portfolios, a sign of improvement in sentiment that could make even the most stoic investor crack a smile.

Top institutional buyers like MicroStrategy are still keen on HODLing, solidifying the demand base for this digital darling. With analysts claiming that the retracement is merely a normal hiccup in a bull cycle, whether the BTC price will cross the $90,000 threshold in the coming days remains a tantalizing mystery, much like the ending of a good novel.

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2025-03-01 00:47