Bitcoin's Narrow Range Holds as PCE Inflation Data Looms

The Bitcoin price remains within its narrow range of $83K to $87K. On Wednesday, the highly anticipated Personal Consumption Expenditures (PCE) inflation data will be released.

This data is closely watched by the Federal Reserve as it measures inflation, aiming for a Holy Grail of 2%. A hotter-than-expected Core PCE figure could lead to higher bond yields and a stronger dollar. Conversely, a cooler print would likely spark a rally in stocks, which Bitcoin bulls are hoping for.

The U.S. 10-year bond yield has accelerated over the past week, hitting a 19-year high of 5.293. However, it appears to be on its way back down again, with a possible target of 5%.

Despite the volatile market conditions, Bitcoin's price has maintained its narrow range, holding firm against rising bond yields and other assets like stocks and precious metals.

Some analysts are concerned that the price action could be forming a bearish descending triangle. However, if the price does break to the upside, it will make the breakout even more bullish.

The weekly chart for Bitcoin shows a huge inverse head and shoulders pattern if the price were to correct to $73K. This would likely form the right shoulder of the pattern, with a measured move potentially sending the price up to $108K.