Bitcoin (BTC) saw flash volatility around Wednesday’s Wall Street open as US jobs data came in well above expectations.
Key points:
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Bitcoin attempts to rescue the day’s losses on the back of stronger US nonfarm payrolls data.
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Mixed signals result in risk assets diverging in their reactions to the numbers.
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Bitcoin traders stay wary of a deeper BTC price dip to come.
Analysis: Fed interest-rate pause to “continue”
Data from TradingView tracked a BTC price spike to nearly $69,000 which quickly retraced, extending daily losses past 4% at the time of writing.
BTC/USD one-hour chart. Source: Cointelegraph/TradingViewUS nonfarm payrolls outperformed considerably on the day, with 130,000 jobs added in January versus the anticipated 55,000.
US civilian unemployment data. Source: Bureau of Labor StatisticsStrong labor-market numbers tend to imply less need to lower interest rates, typically a headwind for crypto and risk assets. At the same time, the reduced likelihood of recession creates a nuanced picture for risk-asset performance.
As such, the S&P 500 initially gained 0.5%, while the Nasdaq Composite Index fell 0.6% before both retraced their moves.
Precious metals also saw uncertain price action, with gold hitting new February highs before giving back gains to target $5,000 support.
XAU/USD four-hour chart. Source: Cointelegraph/TradingViewReacting, trading resource The Kobeissi Letter additionally referenced cooling unemployment in predicting that the Federal Reserve would hold rates steady at its March meeting.
“The unemployment rate FELL to 4.3%, below expectations of 4.4%. This was a much stronger than expected jobs report, all around the board,” it wrote in a post on X.
Fed target rate probabilities for March FOMC meeting (screenshot). Source: CME GroupThe latest data from CME Group’s FedWatch Tool put the odds of a March rate pause at over 90%.
Attention is now focused on Friday’s Consumer Price Index (CPI) print for further cues as to the path of inflation.
Trader eyes BTC price “slow bleed” toward $50,000
Commenting on recent BTC price action, traders remained unimpressed and skewed toward fresh downside.
Related: BTC traders wait for $50K bottom: Five things to know in Bitcoin this week
Daan Crypto Trades brought in Fibonacci retracement levels at $64,569, $62,474 and $59,805 while eyeing the potential for a deeper retracement.
“Pretty weak showing overall after the initial bounce. Bulls failed to push higher past that $72K+ mark and instead saw price break down again,” he summarized.
BTC/USDT perpetual contract one-hour chart. Source: Daan Crypto Trades/XEarlier, Cointelegraph reported on $69,000 having key long-term significance, with the risk of an extended rangebound environment developing around that level now higher.
$50,000 BTC price bottom targets also persisted, with trader Jelle arguing that BTC/USD was copying 2022 bear market trajectory “closely.”
“Would see a relatively slow bleed towards the low $50ks from here – before bouncing back up; if it keeps playing out the same,” he told X followers.
BTC/USD 2022 chart fractal. Source: Jelle/XThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Source: https://cointelegraph.com/news/bitcoin-reacts-to-major-us-jobs-data-beat-as-fed-rate-pause-odds-near-95?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
