Analysts are becoming increasingly optimistic about Bitcoin (BTC) price prospects following a rebound to the critical resistance level that capped gains earlier this week.

After testing the 50-day simple moving average support near $63,500, the leading cryptocurrency managed to bounce back sharply and surpass $67,000 and is approaching the resistance line defined by the trend line connecting the highs in March and April.

The downtrend line in question became a difficult level for bulls to break when it came into focus on Monday and in May.

Depending on the mood of analysts, this may happen soon. One trigger could be the U.S. core personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure. This data will be released at 12:30 UTC (08:30 ET). Another trigger could be Republican presidential candidate Donald Trump’s speech at the Bitcoin conference in Nashville.

“The upcoming PCE data could be the final blow for high interest rates and could lead to rate cut announcements soon, while Trump’s speech at the Bitcoin conference is a national strategic reserve for BTC,” Valentin Fournier, a digital asset analyst and analyst at consulting firm BRN, said in an email. “If the rumors come true, it could start a stronger rally,” he said.

These factors could push Bitcoin to new highs, Fournier added.

PCE data is expected to show a 0.1% increase in June, according to FactSet. While there was almost no change in May, there were increases of 0.3% in the previous three months. The annualized figure is expected to be 2.4% in June, which would be the smallest increase since 2021.

Continued progress on the Fed’s 2% target strengthens the possibility that the central bank will cut interest rates. Renewed liquidity relief in the context of resilient economic growth highlighted by Thursday’s US GDP data could create bids for risky assets, including cryptocurrencies.

Crypto investors are also looking forward to Trump’s speech on Saturday. There has been speculation all week that he might announce a larger role for BTC in the financial system.

According to crypto service provider Matrixport, other factors such as mining hashrate and increasing stablecoin supply also show optimistic signals.

“Bitcoin mining hashrate has improved, a leading indicator of Bitcoin rallies. Instead of inventory reductions, Bitcoin inventories continue to increase. Inventory buildup suggests confidence in future price increases despite some miners shutting down unprofitable machines,” Matrixport said in a note to clients on Friday. ,” said.

Matrixport also stated that the recent increase in the market value of the stablecoin sector indicates that funds are shifting from fiat currencies to the crypto sector. “Historically, such increases are optimistic and signal a shift away from traditional financial markets towards the crypto sector,” he said.