Bitcoin Support at $59,000 Put to Test by PCE Inflation Data

Bitcoin's price has bounced off $59,000 twice this month, making it the key support level to watch. The latest drop came on Wednesday when BTC fell 2.5% to around $60,954, pressured by a tech stock selloff.

The repeated bounce has made $59,000 the number traders are watching, not the rounder $60,000 mark, as they look for signs of buying interest stopping price falls. Traders generally need to see at least two bounces from the same level before treating it as confirmed support.

Thursday's core PCE inflation data could push BTC below $59,000 if it comes in hot, adding pressure for further Fed rate hikes that would likely strengthen the dollar and weigh on crypto prices. Bitcoin ETFs are heading for a seventh straight week of capital outflows.