$BTC Bitcoin Bulls Stumble Again, But Optimism Remains

Bitcoin struggled to break through a key resistance level on Thursday, despite positive news from the U.S. inflation report.

BTC bulls were unable to penetrate critical resistance following the positive U.S. inflation data, leaving the potential for further losses. However, the downside may be limited as the recent supply overhang from Germany's Saxony state has been exhausted. Additionally, expectations of a Fed rate cut and FTX repayments may offer support, according to a prime broker.

Thursday was a significant day for the crypto markets as Bitcoin (BTC) failed to surpass a key resistance level despite a positive U.S. inflation report. This maintained the downward trajectory observed since early June. After the U.S. reported the first drop in consumer prices in four years, markets quickly increased bets on a Fed rate cut, boosting higher-risk assets, including BTC.

For a moment, it appeared that Bitcoin bulls would establish a foothold above the descending trendline that has characterized the sell-off from June highs near $72,000. Such a move would have signaled an end to the pullback and could have attracted momentum traders, as discussed in Thursday's First Mover America.

However, bullish hopes were quickly dashed as prices turned lower from the trendline resistance, falling below $57,000 early today.