Bitcoin Experiences Decline to 1-Month Low Following US Jobs Data

Bitcoin’s price volatility has created uncertainty among traders as the latest US employment statistics are released.

Bitcoin Falls Below $55,000

According to data from TradingView, Bitcoin (BTC) initially surged before the September 6 market opening, but quickly retracted as the US trading session commenced. During this period, Bitcoin’s price dipped to new month lows, reaching $54,919 on Bitstamp.

The nonfarm payroll figures for August were lower than anticipated, raising concerns regarding the overall strength of the labor market. Analysts speculate on the impact this may have on future economic policies.

In response to the economic indicators, a senior figure from the Federal Reserve suggested it might be time to consider lowering interest rates. The Fed’s upcoming decision is scheduled for September 18.

“The current restrictive stance of monetary policy has been effective in restoring balance to the economy and bringing inflation down,” stated New York Fed President John Williams.

Market expectations reflected a 53% chance of a 25-basis-point rate cut and a 47% chance of a 50-basis-point cut, according to insights from the CME Group’s FedWatch Tool.

At the market opening, the US dollar demonstrated strength, increasing by 0.3%, though Bitcoin seemed to negate the overall market response to the employment data. Several analysts foresee long-term weaknesses for the dollar, theorizing this could benefit riskier assets.

BTC Price Action Presents Challenges for Bulls

In assessing the short-term movements of BTC, trader and analyst Rekt Capital highlighted the frustrating nature of current conditions for bullish traders.

“Bitcoin is forming a 4-hour downtrending channel with a bullish divergence developing,” Rekt Capital noted in a recent update. This suggests that despite the decline, there may be potential for future price recovery.

A further analysis indicated that price movements are continually rejecting a diagonal trendline within the established channel structure. “Securing 4-hour candle closes above resistance is crucial for confirming the next trend,” he emphasized.

“Upside wicks into/above the diagonal precede rejections,” he concluded.

This overview does not constitute investment advice. All trading carries risks, and individuals should conduct thorough research before making investment decisions.