Bitcoin Price Rebounds Following PCE Data – Is $90,000 the Next Target?

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Bitcoin Price Rebounds as PCE Data Eases Inflation Fears – Is $90,000 Next? Bitcoin (BTC) has staged a strong recovery, signaling renewed bullish sentiment as investors digest the latest Personal Consumption Expenditures (PCE) data from the United States. The leading cryptocurrency has successfully breached the $84,000 resistance level, reflecting a positive reaction to inflation figures that suggest price pressures may not be as concerning as feared.

How PCE Data is Shaping Bitcoin’s Price Movement

According to the Bureau of Economic Analysis (BEA), the PCE Price Index for January rose 2.5% year-over-year (YoY), while the Core PCE Price Index (excluding food and energy) increased 2.6% YoY. These figures align closely with market expectations, indicating that inflation, while still present, is slowing down compared to previous months.

For context, December’s Core PCE Index stood at 2.9%, meaning the latest reading represents a slight decline. On a month-over-month basis, inflation increased by just 0.3%, reinforcing the view that inflation remains under control—though still above the Federal Reserve’s 2% target.

Despite the Fed’s likely need to adjust its interest rate strategy, the PCE data has brought relief to the market, helping to ease macroeconomic fears that previously contributed to Bitcoin’s short-term downturn.

Bitcoin Eyes $90,000 as Momentum Builds

At the time of writing, Bitcoin is trading at $84,171, down 0.41% in the past 24 hours. Over this period, BTC has fluctuated between a low of $78,248.91 and a high of $84,938.65, indicating strong volatility in the wake of the PCE report.

A previous BTC price analysis suggested a potential dip toward $75,000 after Bitcoin dropped below $80,000 on February 27. However, the latest rebound has shifted market sentiment, with analysts now debating whether BTC has already hit its bottom for this correction.

On the BTC/USD 4-hour chart, Bitcoin’s Relative Strength Index (RSI) now stands at 41.94. Just hours ago, RSI dropped as low as 18.64, indicating oversold conditions that often precede a price recovery. Given this momentum, a move toward $90,000 is increasingly plausible in the near future.

What’s Fueling Bitcoin’s Rebound?

Several key catalysts are driving Bitcoin’s potential recovery, reinforcing optimism that higher price targets may be reached soon.

1. Institutional Accumulation Remains Strong

   • BlackRock recently added Bitcoin ETFs to its model portfolios, signaling growing confidence in Bitcoin’s long-term value.
   • MicroStrategy and other institutional investors continue to HODL, further strengthening BTC’s demand base.

2. Market Sentiment is Improving

   • Analysts argue that this retracement is part of a normal bull cycle, and that Bitcoin remains on track for new all-time highs.
   • The ongoing Bitcoin ETF inflows continue to attract institutional buyers, preventing deeper market downturns.

With bullish momentum rebuilding, Bitcoin could soon attempt to reclaim $90,000, marking the next psychological resistance level in this ongoing rally. However, investors remain cautious, keeping an eye on macroeconomic conditions and market liquidity in the coming days.