Bitcoin Price Faces Decline as US Jobs Data Looms

Bitcoin continues to experience a downward trend as it approaches the critical US jobs data release for the week.

Impact of US Jobs Data on Market Sentiment

Recent data from TradingView indicated a brief improvement in Bitcoin’s price action amid macroeconomic conditions. However, BTC/USD has seen a 2.3% decline today, struggling to maintain its position as US equities gained.

Notably, the private-sector payrolls report revealed an increase of only 99,000 jobs compared to the expected 144,000, marking the smallest gain since 2021, as highlighted by trading resource The Kobeissi Letter.

“What is happening to the labor market?”

The CME Group’s FedWatch Tool suggests that there are growing expectations for a potential interest rate cut by the Federal Reserve at its upcoming meeting on September 18.

Data released on September 4 showed job openings falling to 7.67 million against an expectation of 8.1 million. Macroeconomic commentary from Macro Dose described this as “substantially worse than expected,” indicating a cooling labor market.

As the Federal Reserve prioritizes its employment mandate, it will closely monitor additional data this week to guide its decisions regarding potential rate cuts.

Potential for Bitcoin Price to Retest Key Levels

In light of upcoming unemployment data on September 6, Bitcoin market participants anticipate further movements in price. Trading analyst, Keith Alan, cautioned that the August low of $49,500 might still attract a reversal, potentially forming a “double bottom.”

In his latest analysis, Alan expressed interest in seeing a retest, suggesting that testing this level could provide valuable insights into Bitcoin’s trajectory moving forward.

A significant trendline to watch is the 50-week simple moving average (SMA), currently positioned at $53,355. Another trader, CrypNuevo, pointed out that if the unemployment data boosts risk assets, Bitcoin could see a bounce just above $60,000.

“Some liquidations are accumulating between $60k and $60.2k in the 7-day liquidity heatmap,” he remarked, emphasizing its significance ahead of the FOMC meeting.

“A positive labor market report tomorrow could be crucial for market movements.”

This information is for educational purposes only and should not be considered financial advice. Always ensure to conduct thorough research before making investment decisions.