Bitcoin erased its post-PCE gains as analysts cautioned that methodology changes complicated the lower-than-expected inflation reading.
Bitcoin (BTC) held above $83,000 on Thursday after giving back gains following lower-than-expected US inflation data.
Data from Coinbase showed BTC/USD flat on the day after a brief bout of volatility ahead of September’s monthly and third-quarter close.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Bitcoin began Q4, historically its strongest quarter, at around $83,550, after posting third-quarter gains of 42.7%, according to data from CoinGlass — its best Q3 performance since 2017.
BTC/USD quarterly returns (screenshot). Source: CoinGlass
CoinGlass’s liquidation heatmap showed potential liquidation clusters above and below Bitcoin’s market price.
On Thursday, a new $60 million cluster of estimated liquidation exposure appeared near $83,000, close to key support at $82,500 — a level that analysis marked as critical for Bitcoin’s broader rebound from June lows.
BTC liquidation heatmap. Source: CoinGlass
Bitcoin’s latest rally stalled Wednesday, with BTC/USD reversing at $85,600. The advance followed a lower-than-expected US inflation reading. The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, came in at 3.4% year-on-year in August, versus expectations of 3.7%.
“Excluding food and energy, the PCE price index increased 3.0 percent from one year ago,” an official release from the Bureau of Economic Analysis (BEA) stated, referring to core PCE.
The release also incorporated methodology changes affecting portfolio management and investment advice, computer software and accessories, and legal services.
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