Bitcoin Plunges to 6-Week Low, Bearish Fear Reignites... 'Dangerous if it Fails to Reclaim $75,000'

▲ Bitcoin (BTC), crash/ChatGPT generated image

Bitcoin (BTC) has fallen to a 6-week low. US inflation and tensions from Iran simultaneously weighed on the market.

According to cryptocurrency media outlet Cointelegraph on May 28 (local time), Bitcoin was pushed to its lowest level since mid-April amid geopolitical instability and the burden of US inflation data. Based on TradingView data, Bitcoin dropped to $72,462. This price marks the first low seen since April 13.

Downward pressure intensified as US airstrikes in Iran coincided with inflation data. The April Personal Consumption Expenditures (PCE) price index rose 0.4% month-over-month and 3.8% year-over-year. Cointelegraph reported that this figure is the highest since 2023. The PCE is considered the preferred inflation indicator by the US Federal Reserve.

The Kobeissi Letter pointed out that the annual PCE is almost double the target of 2%. The Kobeissi Letter stated on X (formerly Twitter), "The Fed's top inflation indicator is almost double its target," and "Inflation is fully back."

However, the decline in risk assets was partially limited by reports of a 60-day ceasefire proposal between Iran and the United States. Cointelegraph reported that the ceasefire proposal is awaiting approval from US President Donald Trump. The Kobeissi Letter stated that the US stock market hit an all-time high following the related news.

Traders focused on the 2025 year-to-date low below $75,000 as a key price level for Bitcoin. Castillo Trading analyzed that the bull market needs to return above the 2025 year-to-date low before the weekly close. Castillo Trading believes that even if Bitcoin drops to $70,800, a higher low could be confirmed, and in this case, the multi-month uptrend could be maintained.

On the upside, the 200-day simple moving average and the 200-day exponential moving average have re-emerged as resistance levels. Trader Daan Crypto Trades commented on the current trend, saying, "After retesting horizontal price levels and the daily 200-day moving average, a similar reaction to January this year is emerging." He added, "Until proven otherwise, it's another lower high within a larger downtrend."

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