Bitcoin was moving sideways in the last 24 hours. The topmost cryptocurrency saw volatility but rejected it as the US inflation data. Bitcoin, as per data from CoinMarketCap, was trading at $16,840 up by 0.06%.
Analysts say the impact of the November US Personal Consumption Expenditure (PCE) Price Index print was notably muted even though the data forming a key component of Federal Reserve policy. Bitcoin continues to trade in the low-volume, low-volatility environment. The PCE has barely moved. And Christmas is not looking so great after all. For the month of November, the core PCE was 4.7%. This shows that inflation retreated but fell short of a bullish surprise for risk assets.
Michael van de Poppe, the CEO of Eight, says there is a strong reaction and a quick flip of $16,750. He outlined that if BTC holds, there would be a break at $16,900 – $17,000 and an uptrend to $17,450 – if not longs lower at $16,450. Il Capo of Crypto, trader, and analyst, is bearish. He believes the inability to break the crucial $17,000 mark says it all. Moreover, data from Materials Indicator suggests significant bid interest at $16,500 on the Binance order book. But CryptoQuant noted that transaction volumes had fallen in line with the broader trend. It highlighted that macro bottoms in miner activity historically coincided with BTC price bottoms.
Woominkyu, an analyst, believes transactions from affiliated miners to all exchanges clearly show that selling pressures from miners had been weakened from late 2021 to the present. The transactions were very high while the price of Bitcoin was high as well. But it doesn’t indicate that miners are not able to sell more BTC at this moment. It should be seen whether the transactions go as low as the last bear cycles. Its possible for Bitcoin to form a bottom too.