Bitcoin has repeatedly found support near $59,000 this month, with the key short-term support level shifting from $60,000 to this level. Thursday’s release of U.S. core PCE inflation data may serve as a critical test of whether this support holds.
$59,000 is a short-term level to watch.
According to CoinDesk data, on Wednesday, after increased selling pressure pushed Bitcoin down to around $59,000, it rebounded to the $61,000 level and has most recently settled near $60,800. A similar pattern occurred earlier this month. On June 5, Bitcoin also found support near $59,000 and subsequently rallied to as high as $67,000 over the following days.
In technical trading, a support level typically refers to a price zone where buying pressure begins to strengthen during a downward movement, slowing or reversing the decline. The market generally does not confirm a new support level based on a single rebound; repeated defenses of the same price range are required for this zone to gain significant attention.
Core PCE is a short-term catalyst.
The market is now focusing on Thursday’s U.S. Personal Consumption Expenditures (PCE) price index. According to reports, the overall PCE for May is expected to rise 4.1% year-over-year, potentially marking the highest increase since April 2023; the core PCE, which the Fed watches more closely, is forecast to rise 3.3% to 3.4% year-over-year, possibly reaching its highest level since October 2023.
If core PCE exceeds expectations, the market may further bet on the Fed maintaining a hawkish stance, or even strengthen expectations of further rate hikes. This could cause the US Dollar Index to remain strong, putting additional pressure on risk assets and directly challenging Bitcoin’s $59,000 support level.
- Overall PCE is expected to increase by 4.1% year-over-year.
- Core PCE is expected to be between 3.3% and 3.4%.
- The U.S. Dollar Index is at its highest level since April 2025.
A stronger U.S. dollar may suppress risk assets.
The report notes that if inflation data comes in hotter than expected, it could indicate that the resurgence of inflation is not merely a temporary disturbance, but rather a re-emergence of pricing pressures. In such a scenario, a stronger U.S. dollar often suppresses the performance of risk assets such as stocks and cryptocurrencies.
Conversely, if core PCE comes in below expectations, concerns about further policy tightening may ease, and the dollar's upward momentum could slow. This would provide relief for Bitcoin bulls and strengthen market confidence in the validity of a rebound near $59,000.
In the short term, market focus has shifted beyond the round key level of $60,000 to whether Bitcoin can continue to hold the more defined price zone of $59,000.