On Wednesday, Bitcoin (BTC) reached as much as $61,809 after the release of July’s CPI inflation data, which was lower than June’s figure. However, this price surge was short-lived, and BTC soon dropped below $60,000.
A "fakeout" occurred, misleading traders before sharply reversing direction. BTC's price fell to $58,069, registering an 8% decline in 24 hours. The coin also struggled to stay above $60,000 since peaking at $62,400 on August 9, leading to more daily transaction losses.
The ratio of daily transaction volume in profit to loss dropped deeply, standing at 0.88. The demand for short positions increased, indicated by a negative funding rate of -0.004% across exchanges.
BTC's price also fell below its 20-day exponential moving average (EMA), signaling a bearish trend. If BTC continues this downward momentum, it may reach the next support level at $54,847.
Conversely, if market sentiment shifts to bullish, BTC might reclaim the $60,000 mark.
