Tonight's Battle: PCE! Can Bitcoin Make a Comeback?

TradingKey - Bitcoin failed to break through $90,000 again. Tonight's PCE data from the U.S. is crucial. 

On Friday, the trade war escalated. Market panic increased. Bitcoin (BTC) dropped nearly 2%, landing at $85,762. Earlier this week, Bitcoin's attempt to reach $90,000 failed, leading to a downward trend. The daily chart shows a bearish pattern.

Bitcoin Price Chart, Source: TradingView.

Recent events show Trump maintaining a tough stance on tariffs. He announced a 25% tariff on all non-U.S. manufactured cars. He warned Canada and the EU about potential retaliation. This has dampened market sentiment. All eyes are now on the U.S. PCE inflation data set to be released at 8:30 PM.

The market expects PCE inflation to hold at 2.5%. Core PCE might jump to 2.7%, up from the previous 2.6%. If the data remains strong, expectations for rate cuts may be pushed back. This could further pressure Bitcoin, possibly dropping it below $80,000. Conversely, weak data could boost Bitcoin's chances for a rebound.