London, 28 March 2025 – Bitcoin (BTC) and Ethereum (ETH) are experiencing a period of sideways trading as investors await the release of the Core Personal Consumption Expenditures (PCE) Index data from the United States later today. The data is expected to provide fresh insights into inflation trends, potentially influencing the Federal Reserve’s stance on interest rate cuts.
Bitcoin struggles at key resistance levels
Bitcoin, the world’s largest cryptocurrency, attempted a recovery above $86,800 but faced strong resistance at the $88,000 to $88,200 range. As of 10:30 AM GMT, Bitcoin was trading at $86,174.94, marking a 1.51% decline over the past 24 hours. During this period, BTC fluctuated between $87,702.17 and $85,837.93, highlighting the ongoing battle between bulls and bears.
Despite the resistance, Bitcoin managed to hold above the $87,200 support level, following a successful defence of the $85,900 floor. According to Binance, Bitcoin’s 24-hour trading volume stood at $23.08 billion, with a market capitalisation of approximately $1.709 trillion.
Market analysts suggest that a breakout above $88,200 could reignite bullish momentum, potentially pushing Bitcoin towards the $90,000 mark. However, until such a breakout occurs, BTC remains vulnerable to further downside movements.
Ethereum faces similar resistance
Ethereum (ETH), the second-largest cryptocurrency, has followed a similar trajectory, failing to maintain momentum above $2,100. As of this morning, Ethereum was trading at $2,003.24, reflecting a 0.77% decline over the past 24 hours.
Despite the current dip, Edul Patel, CEO and co-founder of Mudrex, noted that Ethereum is gearing up for a potential relief rally. According to CoinGlass data, futures traders have committed 10.84 million ETH in open interest, indicating renewed confidence among ETH holders. Patel believes that if Ethereum manages to hold above the $2,000 psychological support level, a short-term rebound towards $2,150 could be on the horizon.
Macroeconomic factors fuel market volatility
Beyond technical analysis, macroeconomic developments are playing a significant role in shaping market sentiment. The escalation of trade tensions following US President Donald Trump’s tariff announcement has introduced fresh volatility across global financial markets.
“Historically, periods of heightened geopolitical and economic uncertainty have seen digital assets like Bitcoin viewed as alternative stores of value, although their correlation with risk assets remains evident in the short term,” said Riya Sehgal, research analyst at Delta Exchange.
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The US PCE Index data set to be released later today is expected to have a direct impact on market sentiment. Should inflation come in higher than expected, the Federal Reserve may adopt a more hawkish stance, delaying potential interest rate cuts. This scenario could apply additional downward pressure on risk assets, including cryptocurrencies.
On the other hand, a lower-than-expected PCE reading could strengthen the case for rate cuts, potentially boosting investor confidence in Bitcoin and Ethereum.
Altcoins see mixed movements
While Bitcoin and Ethereum remain range-bound, other popular cryptocurrencies have shown mixed performance.
- Ripple (XRP) declined by nearly 4%, reflecting bearish sentiment.
- Solana (SOL) dropped by approximately 3%, continuing its recent downtrend.
- Binance Coin (BNB) bucked the trend, trading nearly 1% higher, suggesting relative strength compared to other altcoins.
Institutional interest remains strong
Despite short-term price fluctuations, institutional investors continue to show strong interest in Bitcoin. Exchange-traded funds (ETFs) linked to Bitcoin have been witnessing steady inflows, indicating that long-term investors remain optimistic about the cryptocurrency’s future.
“Bitcoin ETFs continue to attract capital, which is a positive sign for institutional adoption,” said Sehgal. “As long as ETF demand remains robust, Bitcoin’s long-term trajectory appears bullish.”
What lies ahead?
With US economic data and global trade policies influencing investor sentiment, Bitcoin and Ethereum could see heightened volatility in the coming days. Traders will closely watch the $88,000 resistance for Bitcoin and $2,100 resistance for Ethereum as key levels that could dictate the next directional move.
For now, all eyes remain on the US PCE Index, as its release could be the catalyst for the next major price swing in the cryptocurrency market.
