Traders eye $59,000 as a critical support level for BTC before Thursday’s U.S. inflation report, which may influence risk assets.
Bitcoin has established $59,000 as a key support level after repeated bounces near that price this month. The level has replaced the psychological $60,000 mark as traders monitor downside risks ahead of Thursday’s U.S. core PCE inflation data.
The core PCE report is expected to show the fastest price growth since late 2023. A stronger-than-expected reading could bolster the U.S. dollar, pressuring risk assets like BTC. Earlier this month, BTC rebounded from near $59,000 to $67,000, reinforcing the level’s significance.
As of Wednesday, BTC traded near $60,800 after briefly dipping to $59,000 before recovering to $61,000 overnight. Market participants are watching for further reactions to the inflation data.