Bitcoin faced increased volatility on September 12, dropping below $58,000 as fresh US macroeconomic data signaled mixed inflation results. The Producer Price Index (PPI) for August showed a 0.3% month-on-month rise, slightly exceeding expectations. However, the annual PPI was lower than anticipated, coming in at 2.4%.
Unemployment Figures Add to Uncertainty
More focus was placed on unemployment data, which reported 230,750 new claims, surpassing the expected 227,000. Despite the mixed figures, traders and analysts believe the Federal Reserve is still on track for a 0.25% interest rate cut during its September 18 meeting, with markets pricing in an 85% chance of this happening, according to CME Group’s FedWatch Tool.
BTC/USD 1-hour chart. Source: TradingView
European Central Bank (ECB) also took the lead by reducing interest rates, which added to the cautious optimism surrounding Bitcoin.
Market Sentiment and Resistance Challenges
Despite the broader macroeconomic concerns, some analysts remained optimistic about Bitcoin’s potential for recovery. Michaël van de Poppe noted that while monthly inflation data was worse than expected, the overall outlook was positive for Bitcoin.
Fed target rate probabilities. Source: CME Group
However, traders were still cautious, with resistance overhead at $60,000 providing a barrier. Skew, a popular trader, suggested that the market would need much stronger momentum to push Bitcoin past this resistance level. Willy Woo, a prominent Bitcoin statistician, indicated that the market conditions remained indecisive, signaling potential turbulence ahead.
As of now, Bitcoin remains pinned below $58,000, with liquidity resistance building around the $58,500 mark. Traders are closely watching for further developments as US inflation data and Federal Reserve decisions loom large.
