Bitcoin ($BTC) Quickly Losing Support Range; Price At $21K Next?

Bitcoin price crypto news: Top cryptocurrency Bitcoin is showing huge volatility following stronger than expected Personal consumption expenditures (PCE) data. The crypto market is currently mimicking the decline trend seen in the stock markets, with the S&P 500 Index down by 1.33% while Nasdaq is down 1.80%. Whether the crypto prices would recover during the weekend remains to be seen. Else, a break from the current support area would mean loss of gains from January, which was significantly fruitful for the crypto market.

Also Read: U.S. Core PCE Inflation Surges 4.7%, More Interest Rate Hikes Ahead?

Further Dip On The Cards?

While the crypto market saw some regular correction recently with a weekly drop by 4.20%, traders were hoping that the inherent trend is directed upwards. Popular trader Michael van de Poppe feels BTC could likely comeback to above $25,000 level as long as the top cryptocurrency’s price stayed above $22,000. However, BTC is fast losing value in the aftermath of hot PCE inflation data in the US for January 2023. Bitcoin price dropped by 2.44% in the last one hour, in line with the widespread decline in the stock markets.

The U.S. Dollar Index (DXY) jumped to a two month high level of 105.14, with a 0.50% rise, as the PCE inflation data was released. While a further dip could lead to further dip in Bitcoin price, a section of traders believe this is a momentary reaction stemming out of fear of further rate hikes in coming months by the US central bank. Another scenario is also being weighed in, wherein a jump to above $24,000 followed by a decline is anticipated for Bitcoin (BTC) price.

Earlier in the week, the crypto market responded neutrally to the release of meeting of minutes for the the Federal Open Market Committee (FOMC).

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