Bitcoin (BTC) Price: $59,000 Support Level Tested as PCE Inflation Data Looms

TLDR

• Bitcoin has bounced off $59,000 twice this month, making it the key support level to watch
• BTC dropped 2.5% to around $60,954 on Wednesday, pressured by a tech stock selloff
• Thursday’s core PCE inflation data could push BTC below $59,000 if it comes in hot
• Bitcoin ETFs are heading for a seventh straight week of capital outflows
• Analyst Ted Pillows warns BTC could fall to $50,000 if it drops 20% below the 200-week moving average

Bitcoin dropped again on Wednesday, falling 2.5% to around $60,954. The latest slide comes as traders watch a key price level heading into a major U.S. inflation report.

Bitcoin has now bounced off the $59,000 price level twice in June. The first time was on June 5, when a sell-off stopped near $59,000 before BTC rebounded to $67,000 in the days that followed. The second came Wednesday, when prices again fell to nearly $59,000 before recovering to around $61,000 overnight.

That repeated bounce has made $59,000 the number traders are watching — not the rounder $60,000 mark.

A support level forms when buying interest is strong enough to stop a price from falling further. Traders generally need to see at least two bounces from the same level before treating it as confirmed support.

Tech Selloff Hits Crypto

Wednesday’s drop in Bitcoin came alongside a broader selloff in technology stocks. An AI trade unwind that started Tuesday carried into Wednesday, pushing investors away from risk assets including crypto.

Rahman also noted that fears around AI valuations have repeatedly triggered risk-off moves in U.S. equities, which tend to pull Bitcoin and crypto lower. BTC remains closely correlated with the S&P 500 and Nasdaq 100.

Bitcoin ETFs continued to bleed capital. Spot Bitcoin ETFs are now on track for seven straight weeks of outflows, with little sign of that trend reversing.

PCE Data Could Be the Next Test

Crypto markets are also pricing in uncertainty ahead of Thursday’s Personal Consumption Expenditures (PCE) report, due at 8:30 AM ET. The core PCE, which the Fed uses as its preferred inflation gauge, is expected to come in at 3.3%–3.4% — the highest reading since October 2023.

If the number comes in above estimates, it could add pressure for further Fed rate hikes. That would likely strengthen the dollar and weigh on crypto prices.

Crypto analyst Ted Pillows posted on X that Bitcoin bottomed 34% below its 200-week moving average in the last cycle. He warned that even a 20% drop below that average this time could send BTC to $50,000, calling that zone the likely floor before any major reversal.

As of writing, BTC is trading near $60,800.

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