Bitcoin prints yet another red candle on Thursday as it registered slight declines. It lost all its accumulated gains, returning to Wednesday’s opening price.
The apex coin saw slight declines at the start of the fourth day of the week. It retraced from $97,882 to a low of $95,249. Although not significantly down, it sees a change from the previous day’s sentiment.
BTC gained over 2% during the previous intraday session. It dipped to $94k but rebounded. However, it closed with significant gains.
Data from Santiment exposed an ongoing trend. The Bureau of Labor Statistics published the US Consumer Price Index on Wednesday. CPI came in higher than expected, resulting in a correction across the crypto market. The metric rose by 0.5% last month, bringing inflation to 3%, exceeding the previous 2.9% forecast. However, prices surged, peaking at $98k.
A closer look at the one-day chart suggests that prices trended between the same price mark since Feb. 5. BTC slipped below $100k on Feb. 4 and has since struggled to reclaim this key level. It maintained trading below the $99k mark despite several brief breakouts. Nonetheless, it held on to the $95k support amid a few flips.
Why is Bitcoin Unable to Breakout?
Data from Santiment shows that Bitcoin is the most talked about on several social media platforms including X, Reddit, Telegram, 4Chan, Bitcointalk, and Farcaster. The level of discussions across these platforms reached it 15-month high.
The latest report suggests that investors maintain significant interest in the apex coin. However, fundamentals remain primarily bearish. The Trump administration continues its trade wars, which have caused massive declines across the market.
Traders are still skeptical about the Feds’ next move. Inflation may continue to increase, as there are no signs of the US president backing down from his latest move. Further CPI rises may force the Federal Reserve to halt any bid at cutting interest rates. This may cause further panic around the traditional market and Crypto.
Some investors are taking the shortcut out. The chart below shows a decline in Bitcoin holders. It is declining as the coin sees notable selloffs. While this may lead to a bullish round, where the whales and sharks will scoop up the dumped coins, the asset may remain within the highlighted price range for an extended period.
Data from CryptoQuant shed more light on the ongoing trend across the market. Exchange reserves are increasing. They slightly increased in the last 24 hours. The bearish trend remains strong over the last seven days as reserves grew by almost 1%.
More traders are dumping their assets into these trading platforms. They moved 20% more coins from cold storage to sell. The Coinbase premium is negative as US investors display stronger selling pressure in the last 24 hours. It’s the same reading on the Korea premium as Asian traders continue selloffs.
Nonetheless, exchange-traded funds and other Bitcoin products registered significant inflows. Lesser long-term holders are moving their assets and miners are moderately selling.
However, the derivatives market is largely bearish. The taker buy-sell ratio is negative, below 1. The number of open interest significantly reduced in the last 24 hours. Selling sentiment remains dominant as the bulls saw massive liquidations.
