Bitcoin falls 3% as the PCE data from the United States is released

Bitcoin hit a local bottom on March 28 while US inflation data was higher than expected.

BTC price chart 4 hours | Source: TradingView## Bitcoin fluctuates as PCE data is released

Data from TradingView shows that the price of BTC approached $85,500 when the Wall Street market opened, before reversing.

After dropping more than 3% in a day, the king of coins has hit a low of below $84,200, marking the lowest level since March 23.

The Personal Consumption Expenditures Index (PCE) of the United States in February then showed that inflation is accelerating — in contrast to the results from the previous month.

While this month's PCE index and the year-on-year comparison align with market expectations at 0.3% and 2.5%, the core PCE index is 0.1% higher than anticipated.

"Core inflation is rising again," The Kobeissi Letter, a trading resource, concluded in its response on X, noting that January's figures have also been revised upward.

Kobeissi argues that the current macro trend creates "the perfect recipe for inflation accompanied by recession in 2025. The inflation data for March will become clearer as the trade war continues."

Change in PCE % of the United States | Source: U.S. Bureau of Economic Analysis## Bitcoin price analysis shows that the “market is cooling down”

Although the price action of BTC seems unaffected by inflation warnings, market participants remain ready for surprises.

"PCE data is about to be released, so I think today will be a volatile day in the market," famous trader Daan Crypto Trades wrote.

Some people still doubt the strength of the crypto market in general, agreeing that Bitcoin is still not entirely stable despite holding steady above $80,000 for several weeks.

"The trend is still upward for BTC, but there are starting to be signs of slightly weaker performance. If it drops below $84,000, I think we will see the price test $78,000-$80,000 and possibly lower before bouncing back," trader, analyst, and entrepreneur Michaël van de Poppe shared on that day.

BTC price chart for 12 hours and RSI data | Source: Michaël van de PoppeTrader TheKingfisher also sees few opportunities for a complete recovery in the short-term uptrend.

"Although short-term price action may suggest a temporary squeeze, the broader outlook still does not support a sustainable bullish narrative. With volatility continuing to decline, current conditions seem more aligned with a typical market cooldown. We may be approaching a seasonal reset, possibly preparing for the familiar 'sell in May and go away' move."

BTC 4-hour price chart and volume data | Source: TheKingfisherDisclaimer: This article is for informational purposes only and is not investment advice. Investors should do their due diligence before making any decisions. We are not responsible for your investment decisions.

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Minh Anh

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