Bitcoin (BTC) struggled with an $80,000 reclaim at Friday’s Wall Street open as strong US jobs data added to headwinds.
Key points:
- Bitcoin crisscrosses $80,000 as US jobs data notionally reduces the odds of US interest-rate cuts.
- US jobs vastly outpace expectations, adding almost twice the anticipated number of jobs in April.
- Traders avoid giving up on the local uptrend, seeing a “healthy” support retest.
Bitcoin stays undecided on fate of $80,000
Data from TradingView showed ongoing BTC price volatility as buyers and sellers sparked gyrations around the key $80,000 mark.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
US nonfarm payrolls revealed that the economy added far more jobs than expected in April, despite ongoing inflation pressure thanks to the Iran war.
The Bureau of Labor Statistics reported 115,000 jobs — far beyond the expected 65,000.
“The change in total nonfarm payroll employment for February was revised down by 23,000, from -133,000 to -156,000, and the change for March was revised up by 7,000, from +178,000 to +185,000,” an accompanying news release stated.
“With these revisions, employment in February and March combined is 16,000 lower than previously reported.”
US civilian unemployment rate. Source: BLS
The unemployment rate remained unchanged at 4.3%.
Bitcoin initially fell on the numbers, as outperformance implied less need for the Federal Reserve to relax financial policy.
As Cointelegraph reported, the Fed made it clear at its latest meeting on interest rates that conditions were conducive to tightening, and that rate cuts were unlikely.
The latest data from CME Group’s FedWatch Tool reflected market expectations of a potential rate hike at the Fed’s next meeting on June 17.
Fed target rate probabilities for June 17 FOMC meeting (screenshot). Source: CME Group
BTC price sees “healthy bullish backtest”
Among traders, the mood was one of cautious optimism with acceptance that recent gains may not hold for long.
Related: Bitcoin Bollinger Bands push key breakout as creator acts on positive signal
“Retesting the highs from the previous consolidation,” Daan Crypto Trades summarized in his latest X analysis.
“Good bounce so far but this is a key level for the bulls to hold.”
BTC/USDT perpetual contract 12-hour chart. Source: Daan Crypto Trades/X
Trading account Cryptic Trades saw Bitcoin retesting its bull market support band, an area formed by two daily moving averages.
“For now, this looks like a healthy bullish backtest before a continuation higher,” it wrote on the day.
BTC/USD one-day chart. Source: Cryptic Trades/X
Earlier, Cointelegraph noted signs that a local top could be in for BTC/USD, notably an “overbought” warning on the relative strength index indicator.
