Bitcoin Holds Firm Above $78K Amid Elevated Inflation and Market Optimism

The cryptocurrency market remains bullish despite the US PCE data coming in higher than expected at 3.7%.

This inflation rate is above the forecasted 3.6%, but it seems that markets have already priced in a September rate hike, with only a 38% probability of a 25-basis-point move in the next review cycle.

BTC holds steady at $78,700 after reclaiming gains above both the 50-day EMA and the 200-day EMA. However, momentum is stretched, with the MACD staying in positive territory but the RSI hovering near 78 in overbought conditions.

The 100% Fibonacci retracement level at $82,850 could serve as a key resistance zone for BTC's next push higher. Initial support lies at the 78.6% Fibonacci retracement at $77,489.