Bitcoin’s Price Outlook: Optimism Grows Amid Key Economic Indicators

Optimism Surrounds Bitcoin’s Price Prospects

Analysts are increasingly optimistic about the potential for bitcoin’s (BTC) price to surge following a recent rebound toward a significant resistance level that previously limited gains earlier this week. After testing the 50-day simple moving average support near $63,500, the leading cryptocurrency has experienced a notable bounce, surpassing the $67,000 mark, as indicated by CoinDesk data. Bitcoin is now approaching a resistance line identified by a trendline connecting the highs from March and April. This descending trendline has proven to be a formidable barrier, having thwarted bullish attempts both on Monday and during a similar situation in May, making it a critical level for traders to conquer.

Market sentiment suggests that a breakthrough could be imminent. One potential catalyst for this bullish momentum could be the upcoming release of the U.S. core personal consumption expenditures (PCE) price index, which serves as the Federal Reserve’s preferred gauge of inflation. This data is set to be unveiled at 12:30 UTC (08:30 ET). Additionally, anticipation is building around Republican presidential candidate Donald Trump’s scheduled speech at the Bitcoin conference in Nashville.

According to Valentin Fournier, a digital assets analyst at advisory firm BRN, “The forthcoming PCE data could deliver a decisive signal against prolonged high interest rates, potentially leading to announcements of imminent rate cuts. Moreover, if Trump’s speech hints at a national strategic reserve for BTC, we could witness a significant rally.” These developments, Fournier notes, could propel bitcoin to unprecedented heights.

The PCE reading is projected to indicate a modest 0.1% increase in June, following a period of minimal change in May and a 0.3% rise in the preceding three months, as per FactSet’s analysis. The annualized figure is expected to reveal a 2.4% increase for June, marking the smallest rise since 2021.

This ongoing progress toward the Fed’s 2% inflation target reinforces the argument for potential interest rate cuts by the central bank. A renewed easing of liquidity, coupled with resilient economic growth highlighted by Thursday’s U.S. GDP data, could invigorate interest in risk assets, including cryptocurrencies.

In addition to these macroeconomic factors, crypto investors are eagerly awaiting Trump’s upcoming speech on Saturday. Speculation has been rife throughout the week regarding the possibility of him announcing a more substantial role for BTC within the financial system.

Other bullish indicators are emerging from the crypto landscape as well. The mining hashrate, which measures the computational power dedicated to the Bitcoin network, is showing signs of improvement. According to crypto services provider Matrixport, “Instead of seeing a reduction in inventory, Bitcoin inventories are on the rise. This build-up of inventory reflects a growing confidence in future price increases, despite some miners shutting down less profitable machines.” Matrixport further noted that fiat-to-crypto inflows are on the upswing, as evidenced by the recent increase in the market capitalization of the stablecoin sector.

“Historically, such increases have proven bullish, signaling a shift of funds from traditional financial markets into the crypto sector,” Matrixport added in a note to clients on Friday.