BTC Faces Critical Test Amid Rising US Inflation and Market Uncertainty

• US core PCE inflation rose 2.8% in June, exceeding expectations and signaling renewed inflationary risks.

• Bitcoin prices are consolidating near key support at 116,300, facing resistance around 118,500–118,800 amid market uncertainty.

• Bitunix analysts recommend cautious trading, awaiting clear BTC breakout signals before positioning.

US core PCE inflation hits 2.8% in June, pressuring BTC markets amid economic risks. Read COINOTAG for expert analysis and trading insights.

How Did US Core PCE Inflation Reach Its Highest Rate Since February?

The US core Personal Consumption Expenditures (PCE) inflation rate rose to 2.8% year-on-year in June, surpassing market expectations and the revised previous figure. This increase marks the fastest inflation growth since February, driven by simultaneous rises in overall PCE and consumer spending. Despite a weak labor market and stagnant real incomes, inflationary pressures remain persistent, raising concerns about a potential economic slowdown.

What Are the Implications of Rising Inflation on Bitcoin’s Market Performance?

Bitcoin (BTC) is currently consolidating after a period of high volatility. The daily chart shows prices converging near the end of a descending trendline and horizontal support triangle. The 118,500–118,800 range acts as short-term resistance, while strong support holds at 116,300. A large cluster of liquidation buy orders around 117,000 reinforces this support, but selling pressure above 120,000 remains significant, indicating cautious market sentiment.

What Are Expert Recommendations for BTC Trading Amid Inflation Uncertainty?

Bitunix analysts highlight that the June PCE rebound adds to inflation uncertainty, compounded by anticipation of new tariff policies. The overall market risk leans bearish. BTC’s position at the end of a converging triangle suggests a potential directional breakout soon. Experts advise against chasing price movements and recommend waiting for a confirmed breakout above 118,800 or a breakdown below 116,300 before making trading decisions.

What Does the Latest Employment Data Suggest About Economic Outlook?

The market expects the upcoming employment report to confirm a decline in hiring momentum, which, combined with inflationary pressures, increases uncertainty around the Federal Reserve’s policy path. A weak labor market and stagnant real income further heighten the risk of an economic slowdown, impacting investor confidence and crypto market volatility.

How Does Consumer Spending Influence Inflation Trends?

Consumer spending rose alongside overall PCE, indicating sustained demand despite economic headwinds. This simultaneous increase contributes to inflationary pressure, challenging the Federal Reserve’s efforts to balance growth and price stability. These dynamics are crucial for understanding BTC price movements in the current macroeconomic environment.

Frequently Asked Questions

What factors contributed to the June increase in US core PCE inflation?

The June rise to 2.8% was driven by increased consumer spending and overall PCE growth, despite a weak labor market and stagnant real incomes, indicating persistent inflationary pressure.

Why is Bitcoin’s price consolidating despite inflation concerns?

Bitcoin is consolidating as traders await decisive moves above resistance or below support levels, balancing inflation risks with market uncertainty and liquidation pressures.

Key Takeaways

• US core PCE inflation rose to 2.8% in June: Fastest increase since February, signaling renewed inflation risks.
• Bitcoin price consolidates near critical levels: Resistance at 118,500–118,800 and support at 116,300 define short-term trading range.
• Expert advice favors caution: Wait for confirmed BTC breakouts before entering positions amid market uncertainty.

Conclusion

The surge in US core PCE inflation to 2.8% in June underscores persistent inflationary pressures that influence Bitcoin’s market behavior. BTC’s consolidation near key support and resistance levels reflects cautious investor sentiment amid economic uncertainties. Traders should prioritize confirmed breakout signals and monitor upcoming employment data to navigate the evolving landscape effectively. COINOTAG remains committed to delivering expert analysis and timely updates to support informed decision-making.