Bitcoin triggers a break on $58K resistance

Bitcoin’s modest retreat on Thursday brings it closer to the crucial $58,000 resistance level amid mixed CPI data

Notably, core CPI increased by 0.3 percent on Wednesday, while monthly CPI data increased by 0.2 percent. The rise in the monthly CPI data raises doubts about the likelihood of the Federal Reserve (Fed) cutting interest rates by 50 basis points in September. The probability of a 50 bps rate cut fell to 8% following the release of the CPI data, indicating a 25 bps cut is more likely. Crypto risk assets shouldn’t benefit from a 25 bps cut.  Simultaneously, the yearly core CPI was 3. 2 percent.

Santiment reported that since March 13, when Bitcoin reached its all-time high of $73,679, weekly transactions of $100,000 or more have decreased by 33.6%. The weekly transaction volume of bitcoin whales has decreased by 29,624 from March’s peak

The analytics company pointed out that whales, or wallets with at least 10,000 Bitcoin, can be equally active in bull and bear markets, this isn’t always a bad indication.
In times of high crowd greed or fear, “large key stakeholders continue to bide their time as they wait to make their next moves,” it was said.

Additionally, the negative exchange flow balance, declining supply on exchanges, and less selling pressure from miners indicate an impending rally in the on-chain data.

According to Glassnode’s weekly report, Bitcoin miners’ mining activity demonstrates their tenacity in the face of diminishing earnings. Only 1% separates the Bitcoin mining hash rate from all-time highs. According to the research, the current difficulty of 338k exahashes required to mine a block is the second-highest in the asset’s history. Trader convictions, however, aren’t in line with the steady fall in Bitcoin exchange volume since July.

US Bitcoin Spot Exchange Traded Funds data showed inflows of $117 million on Tuesday, marking the second day in a row. This three-digit million-dollar inflow was finally recorded on August 26th, a long time ago.