Bitcoin (BTC) experienced a flicker of volatility around the December 23 Wall Street open as the latest US inflation data matched expectations.
Bitcoin sees “crumbs” of volatility in PCE
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair briefly decoupled from the strong sideways action to drop to $16,750 on Bitstamp.
The impact of the US November Personal Consumption Expenditure (PCE) Price Index print was remarkably muted, this despite the data forming a key component of Federal Reserve policy.
Even in the low volume, low volatility environment that Bitcoin continues to trade in, PCE barely moved markets as traders began to accept that Christmas 2022 could be disappointing.
“I hope you guys enjoyed that little vol crumb, it’s probably your last”, answered the popular Byzantine General Twitter account.
Core CPI was 4.7% in November, showing inflation receding, but still not a bullish surprise for risk assets.
“Strong reaction from there, quick turn around $16,750 as well,” Michaël van de Poppe, founder and CEO of trading firm Eight, wrote in part of the Twitter analysis of the day.
“If that holds, I assume we break through the $16,900-17,000 level and go for $17,450 in Bitcoin. Otherwise, looking at lower longs at $16,450.”
Another trader and analyst, Il Capo of Crypto, remained bearish, arguing that “the inability to break $17,000 says it all.”
The data on-chain analysis resource Material Indicators, meanwhile, were showing significant bidding interest parked at $16,500 on the Binance order book.
Data shows reluctance of miners to sell on exchanges
Updating the outlook for Bitcoin miners, on-chain analytics platform CryptoQuant noted that transaction volumes had fallen in line with the general trend.
In a recent Quicktake blog post, contributor Woominkyu reiterated that macro shocks in miner activity historically coincide “more or less” with BTC price lows.
“Looking at the transactions of the miners affiliated with all the exchanges, it clearly shows that the selling pressures of the miners have weakened from the end of 2021 to the present. Interestingly, it is notable that their transactions were very high while the price of BTC was considerably high as well”wrote.
“However, it does not indicate that miners cannot sell more BTC right now, but it is important to see that when their transactions are down as much as the last few bear cycles (or so), it is possible that BTC is forming a bottom as well.”
An accompanying graph showed transactions from miner’s wallets to exchanges, which had a considerable impact since mid-2021.
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