Bitcoin Nears $63K as Bulls Chew Through 'Taker Selling'

Bitcoin (BTC) chalked out modest gains Wednesday, chewing through selling pressure over Binance as the dollar index (DXY) tumbled ahead of the pivotal U.S. April inflation data.

CoinDesk data shows that the leading cryptocurrency by market value rose 2% to $62,800, nearly reversing Tuesday’s decline.

According to data tracking tool The Kingfisher, the bullish order flow came from the Nasdaq-listed Coinbase exchange and Bitfinex, helping the market absorb ‘taker selling’ over Binance. A taker order is placed by a trader who looks to execute the trade immediately at the going market price.

The spot cumulative volume delta over Coinbase and Bitfinex rose, indicating an increase in net buying pressure, while the CVD on Binance declined, indicating steady selling.

CVD measures the net difference between buying and selling volumes, highlighting whether the buyer or seller was the leader. The indicator includes trades with USD or USD equivalents as quote currencies, including both fiat and dollar-pegged stablecoins.

“Binance Spot taker selling still occurring, so far it's being matched by passive spot bid. Coinbase spot seeing some renewed taker bid, batches of spot being bought,” pseudonymous analyst Skew said on X.

In traditional markets, traders continue to sell the U.S. dollar against major fiat currencies, supporting gains in risk assets, including cryptocurrencies.

According to data source TradingView, the dollar index, which measures the greenback’s exchange rate against a basket of fiat currencies, fell 0.17% to 104.84, signaling a continuation of the decline from the May 1 high of 106.49.

The weakness followed comments by Federal Reserve Chairman Jerome Powell that the current monetary policy is restrictive by many measures and the next move is unlikely to be a rate hike (or additional liquidity tightening).

Powell also downplayed the hotter-than-expected U.S. April producer price index figure, which signaled more inflation in the pipeline.

“I wouldn’t call it hot,” Powell said of the wholesale inflation data. “I would call it sort of mixed.”

The Labor Department is scheduled to publish the consumer price index (CPI) for April on Wednesday at 12:30 UTC. Analysts have said that a softer-than-expected print could lift BTC above $65,000.

The consensus is for the data to show the CPI increased 3.4% over the year in April, a moderation from March’s 3.5%. The core CPI, which excludes food and energy prices, rose 3.6% year-on-year, down from March’s 3.8%.