Thursday witnessed quite a collapse in the Bitcoin price as PPI data came in very much worse than expected. However, the real bombshell was Treasury Secretary Bessent’s comment that the US would not be buying Bitcoin for its Strategic Reserve, a comment that he may now have walked back on. Awful US PPI data Some pretty awful Producer Prices data was released on Thursday which put the skids under the Bitcoin price. It showed that the Producer Price Index had risen 3.3% on an annual basis last month compared with a forecast figure of a 2.5% gain. This could even have implications for the expected rate cut in September. Bessent not buying - then buying again However, what really sent the Bitcoin price into collapse mode was U.S. Treasury Secretary Bessent’s statement during an interview on Fox News that the US government would not be buying Bitcoin to add to its Strategic Reserve. Notwithstanding, only a few hours later in a post on X , the Treasury Secretary appeared to contradict his earlier statement by affirming the following: Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the “Bitcoin superpower of the world.” Whether Bessent miscommunicated in his Fox News interview, or whether he meant what he said, it would seem that the second statement has put Bitcoin purchases back on the agenda. Dip results in closing CME gap and retesting bull flag Source: TradingView If it wasn’t for the trigger of the two valid shocks to the market, one might have thought that the recent sharp dip in price was highly manipulated. Not long after making a new all-time high, the $BTC price fell precipitously all the way down to close the CME gap and retest the top of the bull flag. If you also throw into the mix the fact that short-term momentum indicators were able to reset, the collapse may have had a silver lining. Right now the $BTC price is up against the $119,000 horizontal resistance level. It would be expected that there may be a pause here, but given the bounce from the Stochastic RSI indicators, the pause might only be temporary. Bulls need to get $BTC price back on track Source: TradingView The daily chart shows the trend breaks in the price action and also in the RSI. For both it can be observed that it wouldn’t take too much for the price to get back above those uptrends. Concentrating on the RSI, it will be important for the indicator line to rise above the descending trendline (black line) in order to get back on track. $119,000 is the important level to hold over the weekend Source: TradingView The weekly time frame view for $BTC reveals a candle that is far from good looking. The bulls will be hoping that the candle becomes green and fills up over Friday and the weekend. Even if this doesn’t really happen, the main thing is to stay above what is starting to become a strong level of support at $119,000. At the bottom of the chart, the RSI illustrates how important it is for the indicator line to finally break through the descending trendline. When it does, this is likely the signal that $BTC is heading into its next leg higher. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
