Bitcoin Dives Back Under $111,000 Despite Nonfarm Payrolls Miss

Key points:

• Bitcoin disappoints with volatility around US jobs data, resulting in a dive under $111,000.

• BTC price action gives up all its gains while gold goes on to hit yet another all-time high.

• Traders maintain expectations of a $100,000 support retest.

Bitcoin (BTC) flipped volatile at Friday’s Wall Street open as US jobs data fell far short of expectations.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Gold beats record with US labor market “rapidly deteriorating”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching new September highs of $113,400 before dropping almost $3,000 in an hour.

The August print of US nonfarm payrolls (NFP) confirmed that the economy added 22,000 jobs — far fewer than the anticipated 75,000.

The US dollar’s strength plummeted as a result, while gold hit new all-time highs.

XAU/USD four-hour chart. Source: Cointelegraph/TradingView

Reacting, market participants agreed that the course was now set for a key risk-asset tailwind event: the Federal Reserve cutting interest rates at its Sept. 17 meeting.

Data from CME Group’s FedWatch Tool underscored the likelihood of such an outcome.

“This marks the 2nd lowest jobs report number since July 2021,” trading resource The Kobeissi Letter wrote in part of a thread on X. 

Fed target rate probabilities for September FOMC meeting (screenshot). Source: CME Group

Kobeissi noted that the job numbers for previous months had also been revised down.

“The labor market is far worse than you think: Not only was June’s jobs number negative, but the US economy lost -357,000 full time jobs in August,” founder Adam Kobeissi added.

Bitcoin price targets double down on $100,000 dip

Despite the positive implications of the NFP print for Bitcoin, BTC price action offered a noticeably lackluster reaction.

Related: Bitcoin sets 2024-style bear trap ahead of ‘major short squeeze’: Trader

This was not lost on some market participants, who included popular commentator WhalePanda.

Traders instead looked to key resistance levels still in need of being flipped back to support. Popular trader Daan Crypto Trades flagged the 200-period simple (SMA) and exponential (EMA) moving averages on four-hour time frames.

“The 4H 200MA & EMA are generally seen as a good momentum indicator for the short to mid timeframe trend. These have both acted as resistance for the past few weeks and are now being tested again,” part of an X post explained.

BTC/USDT perpetual futures four-hour chart. Source: Daan Crypto Trades/X

“This is a very crucial level to reclaim for more upside,” fellow trader ZYN agreed about the pre-NFP price zone, adding that “bulls will be fully back” should $113,000 support return.

Bearish perspectives remained, with crypto investor and entrepreneur Ted Pillows reiterating expectations of a drop toward $100,000.

“Also, if this level doesn’t hold, BTC could go around $92K-$94K CME gap level,” he warned on the day.

BTC/USDT one-day chart. Source: Ted Pillows/X

This 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.

Source: https://cointelegraph.com/news/bitcoin-price-ignores-major-us-payrolls-miss-erase-113-4k-surge?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound