Bitcoin Considers Next Move Amid Mixed Market Signals, Inflation Worries

The cryptocurrency market ended the week with a slight decline as Bitcoin consolidated near $64,000 while most altcoins recorded slight losses. The Federal Reserve's core Personal Consumption Expenditures (PCE) index showed that inflation remains elevated at 2.8%, contributing to the market's weakness. The DXY index gained, while the U.S. 10-year Treasury yield fell. Market analysts remain divided on the future of the crypto market, with some predicting further declines and others anticipating a breakout from the current range.

Bitcoin Consolidates Amid Mixed Market Sentiment, Inflation Concerns Linger

The cryptocurrency market concluded the week in a subdued manner, with Bitcoin (BTC) continuing its consolidation near the support level of $64,000. Altcoins, on the other hand, experienced modest losses in response to the release of the latest inflation data.

The weakness in the crypto market stemmed from the Federal Reserve's preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, indicating that inflation remains elevated. The index rose by 2.8% in March compared to the previous year, exceeding analysts' expectations of 2.7%.

Despite the disappointing inflation reading, stocks rallied on the back of strong earnings reports from tech giants Alphabet and Microsoft. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closed higher, gaining 1.02%, 0.40%, and 2.03%, respectively.

The U.S. dollar index (DXY) strengthened by 0.41% against a basket of major currencies, reflecting the market's cautious stance towards inflation. At the time of writing, DXY trades at 106.02. Conversely, the yield on the 10-year Treasury note declined by 88 basis points to 4.665%.

Bitcoin Battles for Direction, Resistance Lingers

Bitcoin traded in a tight range between $63,300 and $64,825 over the week, with buyers and sellers evenly matched. Data from TradingView reveals that bulls have been unable to push prices above the $65,000 level, indicating strong resistance at that point.

Market analyst CryptoChiefs highlighted the significance of the $65,000 resistance and noted that a break above this level could signal a potential rally. However, he also pointed to the downtrend resistance line, which has acted as a barrier for Bitcoin for close to three weeks.

Altcoin Market Faces Uncertainty

Most altcoins in the top 200 posted losses on Friday as traders reassessed their risk appetite in light of the inflation concerns. BinaryX (BNX) bucked the trend, surging by 18.5% to trade at $1.06. Helium (HNT) and Neo also experienced gains, rising by 7.35% and 6.7%, respectively.

Cat in a dogs world suffered the most significant loss, plummeting 14.3% on the day. Arweave