Bitcoin prices are stable but facing strong downward pressure that could push it below $60,000 and previous lows. Despite the challenges, analysts remain optimistic about a potential bullish trend.

Analyst Observations on Bitcoin’s Price Movement

One analyst pointed out that Bitcoin has recently retested the 100-day moving average, historically indicating a potential local bottom and paving the way for a significant upwards rally. Previous instances have shown a 90% surge following such retests.

While this signals hope for traders, the coin is still under selling pressure, with resistance at $66,000 and support at $56,500. The trend direction will largely hinge on the breakout direction from these levels.

Inflation Data as a Potential Growth Catalyst for Bitcoin

The upcoming release of the US Producer Price Index (PPI) and Consumer Price Index (CPI) data this week could impact Bitcoin’s trajectory. A potential decrease in inflation might weaken the greenback and drive investors towards alternative stores of value like Bitcoin.

Analysts suggest that falling oil prices and a strong labor market in the US could lead to a softening of inflation, aligning with expectations of lower PPI and CPI readings, which could further boost Bitcoin’s value.