The recent release of the U.S core PCE data is having a negative impact on the crypto sector. Today, the total crypto market cap (TOTAL) has recorded a dip following the dip in Bitcoin and altcoins. This dip further depicts a bearish outlook in the crypto market risking even more price drop of major cryptocurrencies.
As of the time of this writing, the TOTAL is down by 1% over since the previous trading session. The TOTAL currently stands at $2.67 with more dip expected if macro-financial conditions continue to fuel market instability. Further dip across the crypto market could see the TOTAL dip towards $2.61 trillion. If this level is breached the crypto market could even plummet to $2.52 trillion level with worsen macro-economic conditions.
However, if the crypto market holds strong and manages to put up a reversal, the TOTAL could surge towards the resistance at $2.8 trillion. Further upside momentum with improving market conditions could see the crypto market climb past resistance at $2.92 trillion or even above $3.0 trillion. Such a case would restore bullish momentum in the market.
Bitcoin Tanks Fueled By Sticky Inflation Data
Bitcoin (BTC) has been hit by the U.S Personal Consumption Expenditures (PCE) inflation data shock wave. Currently, the BTC/USD chart shows that Bitcoin is trading at $83,850.14 after breaching the support at the $85,000 level. As bearish sentiment picks up pace, Bitcoin could dip further.
The top coin by market cap has immediate support at $82,564.70 level. A breach of this level could see BTC dip further with the next support levels at $80,789.91 and $78,619.40 levels.
Improvement of the market conditions with support from buyers could see Bitcoin experience a reversal. BTC faces immediate resistance at $85,579.96 with stronger resistance at $87,558.86. Breaching these levels could pump BTC upwards hence invalidating the bearish thesis.
According to the report by the US Bureau of Economic, the US PCE inflation data for February maintains its previous month level at 2.5%. However, the core inflation data for the year-over-year (YoY) period reading at 2.8% exceeded market and previous readings, hence showing sticky inflation.
“Sticky inflation could delay rate cuts — not ideal for risk assets like Bitcoin, which benefit from looser policy,” crypto analyst Ali Martinez shared on X. Bitcoin together with altcoins now face immense price risks hence the recent price dip.
Ethereum Not Spared Either as its Price Dips
The shockwave fueled by the U.S PCE data release has not left Ethereum (ETH) unturned as the price falls further below the psychological $2,000 level. As of this writing, the ETH/USD chart on TradingView shows that the coin is trading at $1,883.26 resulting in more losses.
In fact, Ali Martinez shared earlier today that the dip in the price of Ethereum has resulted in liquidation of $165 million in long ETH positions. If the top altcoin by market cap fails to hold the current price level, more losses could be faced. Ethereum has immediate support at $1,817.19 which if breached could see the coin dip to November 2023 lows. The next support for ETH stands at $1,665.95.
Ethereum faces resistance at the $2,007.17 price level. A pump beyond this level could see ETH rise further towards the $2,206.38 resistance or even higher. However, favorable market conditions must prevail for Ethereum to shift to a bullish trend. Traders must thus monitor both Bitcoin and Ethereum moving forward to determine whether these coins will tank further or rise.
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