Bitcoin moved toward the $74,000 level on Thursday, reaching its highest levels in five weeks as fresh U.S. inflation data boosted risk assets across financial markets.
The rally followed the latest reading of the Personal Consumption Expenditures Price Index, the preferred inflation gauge of the Federal Reserve. The index rose 0.3% month-on-month and 3.1% year-on-year, in line with market expectations, according to the Bureau of Economic Analysis.
The data helped lift both crypto and stock markets, with U.S. equities gaining around 0.5% during Thursday’s trading session. Bitcoin climbed to nearly $74,000, while also reclaiming its 50-day moving average, a key technical level watched by traders.
Market analysts remain divided about Bitcoin’s next move. Crypto trader Michaël van de Poppe said the next major resistance zone lies between $76,000 and $79,000, suggesting a gradual climb rather than a rapid breakout.
Other traders have warned of potential downside risks. Analyst Daan Crypto Trades cautioned that Bitcoin could face a sharp drop if the current support zone fails.
Some market observers also pointed to technical indicators such as the relative strength index (RSI) and moving average convergence divergence (MACD), which may signal weakening momentum.
For now, traders are closely watching Bitcoin’s interaction with its 50-day trend line and changes in market open interest, which could indicate whether the current rally has further room to run.
