After briefly recovering $70k at the start of the week, bitcoin has been slowly slipping and testing the $67k support. With crucial U.S. inflation data coming up on Friday, the stronger-than-expected consumer sentiment and weak treasury sales are gradually pressuring the price of bitcoin.
Nevertheless, the price of bitcoin has been forming a descending channel pattern since mid-March and it is fluctuating closer to the channel’s upper limit than it is to its lower limit. The price will likely show no clear direction until Friday’s U.S. PCE
announcement, and it could be a make-or-break event for bitcoin.
Bitcoin could break out of the descending channel and test $80k within the first half of June if the PCE data indicates the sign of sustained deceleration in inflation, otherwise the price could continue to fluctuate within the descending channel.
If the inflation data comes in hotter than expected, bitcoin could quickly give up about a half of its gain in the past two weeks and decline to around $65k.