Bitcoin Price Prediction: BTC Soars to $67,900; Mixed US Inflation Data & Fed Rate Cut Hopes Fuel Rally

Bitcoin (BTC) continued its upward momentum, reaching around $67,900. The Federal Reserve’s preferred inflation measure, the Core PCE Price Index, increased by 0.2% month-over-month in April, aligning with expectations but slightly below the previous month’s 0.3% rise. This modest increase may ease some inflation concerns for the Fed, but consistent readings are necessary to support a potential rate cut by September.

The Chicago PMI dropped to 35.4, below the anticipated 41.1, indicating weaker manufacturing activity. These mixed data points suggest a complex economic outlook, with easing inflation but slowing economic activity, hence driving a bullish Bitcoin price prediction .

US Inflation Data and Potential Fed Rate Cut

Bitcoin (BTC) maintained its upward momentum, rising to around $67,900. The Federal Reserve’s preferred inflation measure, the Core PCE Price Index, rose 0.2% month-over-month in April, meeting expectations but falling short of the previous month’s 0.3% rise.

This slight increase could alleviate some inflation concerns for the Fed, but consistent readings are needed to support a rate cut by September.

• Core PCE Price Index m/m: 0.2% (expected 0.3%)
• Chicago PMI: 35.4 (previous 37.9)

The Chicago PMI fell to 35.4, below expectations of 41.1, indicating weaker manufacturing activity. These data points suggest a mixed economic outlook, with inflation showing signs of easing while economic activity slows.

This data impacts Bitcoin price as the potential for a Fed rate cut by September becomes more likely if inflation continues to moderate, which could weaken the US dollar and support BTC price gains.

Disappointing US GDP Data Underpins Bitcoin Price

Bitcoin (BTC/USD) is currently trading at approximately $67,900, marking a slight increase of around 0.25%.

The pivot point, marked in green, is set at $68,100 and serves as a critical indicator for potential market direction. Immediate resistance levels are positioned at $68,800, $69,800, and $70,600.

On the downside, immediate support can be found at $67,500, with further support at $66,600 and $65,900.

Technical indicators show the Relative Strength Index (RSI) at 46.94, suggesting a neutral to bearish sentiment.

Bitcoin Price Prediction – Source: Tradingview

Additionally, the 50-day Exponential Moving Average (EMA) is aligned with the pivot point at $68,100, indicating this level as a significant dynamic support.

The outlook for Bitcoin remains bearish below the pivot point of $68,100. A breach below the immediate support at $67,500 could drive further declines, while a break above $68,800 may shift the sentiment towards a bullish bias, targeting higher resistance levels.