Bitcoin Rebounds to $78,500, Overcoming PCE Inflation and US Government Sale Speculation
Price ActionDigital FinanceMacro
Bitcoin (BTC) initially fell to $77,600 following the release of a hotter-than-expected US PCE price index and speculation of a US government sale, but later rebounded to $78,500. The July PCE price index rose 3.7% year-over-year, exceeding the market expectation of 3.6%. On-chain data shows that since August 18, BTC reserves on exchanges have decreased by more than 25,000 BTC, suggesting that long-term holders may be absorbing selling from short-term traders. US-listed Bitcoin ETFs saw inflows of $232 million on August 26, bringing the cumulative inflow over eight consecutive trading days to approximately $2.8 billion. On the technical side, the RSI bullish crossover remains intact, and BTC is trading above its 20-day moving average, but the $80,000 resistance level is expected to test the upside momentum.
