Bitcoin (BTC) saw a flicker of volatility around the Dec. 23 Wall Street open as the latest United States inflation data came in line with expectations.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitcoin sees “crumb” of volatility on PCE
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD briefly decoupling from solid sideways action to dip to $16,750 on Bitstamp.
The impact of the November U.S. Personal Consumption Expenditures (PCE) Price Index print was notably muted, despite the data forming a key component of Federal Reserve policy.
Even in the low-volume, low-volatility environment thatBitcoin continues to trade in, PCE barely moved markets as traders began to accept that Christmas 2022 may be an underwhelming one.
“Hope you enjoyed that little crumb of vol, it’s probably the last,” popular Twitter account Byzantine General responded.
Core PCE was 4.7% for November, showing inflation retreating but still falling short of a bullish surprise for risk assets.
“A strong reaction from there, a quick flip of $16.750 as well,” Michaël van de Poppe, founder and CEO of trading firm Eight, wrote in part of Twitter analysis.
“If that holds, I’m assuming we break $16.9-17K and target $17.45K on Bitcoin. Otherwise, looking at longs lower at $16.45K.”
Fellow trader and analyst Il Capo of Crypto remained bearish, arguing that “the inability to break 17k says it all.”
Data from on-chain analytics resource Material Indicators meanwhile showed significant bid interest parked at $16,500 on the Binance order book.
BTC/USD order book chart (Binance). Source: Material Indicators/Twitter
Data shows miner reluctance to sell on exchanges
Updating the picture regarding Bitcoin miners, on-chain analytics platform CryptoQuant meanwhile noted that transaction volumes had fallen in line with the broader trend.
Related: ‘Wave lower’ for all markets? 5 things to know in Bitcoin this week
In a recent Quicktake blog post, contributor Woominkyu reiterated that macro bottoms in miner activity historically “roughly” coincided with BTC price bottoms.
“By seeing transactions from affiliated…
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