There was a flash of volatility around the opening of Wall Street on December 23 as the latest US inflation data came in in line with expectations.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Bitcoin sees “crumbs” of volatility on PCE
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD briefly decoupling from a solid sideways move to pull back to $16,750 on Bitstamp.

The impact of the US PCE price index for November was notably muted, though the data is a key component of Fed policy.

Even in the low volume and low volatility environment that Bitcoin continues to trade, PCE has barely moved the markets as traders are beginning to accept that Christmas 2022 could be a disappointment.

The Byzantine Public Twitter account replied: “Hope you enjoyed these little crumbs, they may be the last.”

Core PCE was 4.7% for the month of November, showing inflation easing but still far from a bullish surprise for risky assets.

“Strong reaction from there, quick $16,750 volatility as well,” Michael Van de Poppe, founder and CEO of trading firm Eight, wrote in a piece of Twitter analysis.

“If true, then I would assume we break $16.9-17k and target $17.45k on bitcoin. Otherwise, look long at $16.45k.”
Fellow Crypto trader and analyst Il Capo remained bearish, arguing that “the inability to break 17k says it all.”

Meanwhile, data from on-chain material indices and on-chain analytics sources showed strong bid interest halting at $16,500 in the Binance order book.

BTC/USD order book chart (Binance). Source: Material Indicators / Twitter
The data shows miners’ reluctance to sell on exchanges
Picture update Regarding bitcoin miners, on-chain analytics platform CryptoQuant meanwhile indicated that transaction volumes have declined in line with the broader trend.

Related: “low wave” for all markets? 5 things to know in bitcoin this week

In a recent Quicktake blog, contributor Woominkyu reiterated that large bottoms in mining activity have historically “roughly” coincided with BTC price bottoms.

“By seeing transactions from miners affiliated with all exchanges, it clearly shows that selling pressure from miners has weakened from late 2021 to the present. Interestingly, it is notable that their transactions were very high while the price of BTC was significantly higher. Big too.”

However, this does not mean that miners are not able to sell more bitcoin at this moment, but it is important to see that when their transactions fall to the lows of the last (almost) bear cycles, it is likely that bitcoin (BTC) It’s very bottoming out.”
The accompanying chart showed transactions from mining wallets to exchanges, which have taken a significant hit since mid-2021.