According to Cointelegraph, Bitcoin experienced significant volatility as U.S. jobs data released on Friday fell short of expectations, leading to a sharp decline in its value. The cryptocurrency reached new highs of $113,400 for September before plummeting nearly $3,000 within an hour. The disappointing nonfarm payrolls report revealed that the U.S. economy added only 22,000 jobs in August, far below the anticipated 75,000. This unexpected result caused the U.S. dollar to weaken, while gold surged to new all-time highs.
Market participants are now anticipating a potential interest rate cut by the Federal Reserve at its upcoming meeting on September 17, as indicated by data from CME Group’s FedWatch Tool. The Kobeissi Letter highlighted that this jobs report is the second lowest since July 2021, signaling a rapid deterioration in the labor market. Additionally, previous months' job numbers have been revised downward, with June's figures turning negative and a loss of 357,000 full-time jobs in August.
Despite the implications of the jobs data for Bitcoin, its price action remained subdued, failing to capitalize on the situation. Traders are focusing on key resistance levels that need to be converted into support, with the 200-period simple and exponential moving averages on four-hour charts being crucial indicators. These levels have acted as resistance in recent weeks and are currently being tested again. Some traders believe reclaiming these levels could lead to further upside, while others maintain a bearish outlook, predicting a potential drop towards $100,000 or even lower to the $92,000-$94,000 CME gap level.
The cryptocurrency market remains uncertain, with mixed opinions on Bitcoin's future trajectory. Investors and traders are advised to conduct thorough research and exercise caution, as every investment carries inherent risks. This article does not offer investment advice or recommendations.
