BTC price falls 1.8% as Bitcoin deals with ‘schizophrenic’ new US jobs data.
Bitcoin (BTC) saw sharp downward volatility heading into the Wall Street open on June 7 as U.S. payroll data surprised the market.
Bitcoin stumbles due to highly mixed US jobs data.
Data from Cointelegraph Markets Pro and TradingView showed that the BTC price fell $1,300 within an hourly candle before the rebound began.
Bitcoin joined the merciless reaction to U.S. non-farm payrolls data, which beat expectations by a wide margin suggesting the labor market is coping better with tighter fiscal policies than expected.
This in turn lowers the probability that the Federal Reserve will cut interest rates, a key prerequisite for injecting liquidity into risk assets and cryptocurrencies.
According to Bloomberg, economist Mohamed El-Erian responded, “The July rate cut closes the door.”
The Federal Open Market Committee (FOMC) was scheduled to meet on June 12 to discuss interest rates, but markets currently see little chance of a rate cut in the next three meetings.
At the time of this writing, the odds of at least a 0.25% decline at the June, July, and September FOMC meetings were 0.6%, 8.8%, and 50.8%, respectively, according to data from the CME Group FedWatch tool.
Other responses noted the curious contrast between high wages and unemployment rates, which simultaneously rose to 4% – 0.1% above forecast levels.
“The American labor market seems completely schizophrenic,” critic Holger Zschaepitz wrote on X (formerly Twitter).
“The BLS’s Establishment Survey reported 272,000 new jobs in May, while the Household Survey showed a significant decline in the number of employed, with a decrease of 408,000 jobs. This is why the U.S. unemployment rate rose from 3.9% to 4% despite low labor force participation rates.”
BTC price is stuck in a “tight zone.”
Turning to the BTC price action itself, market participants chose to take a back seat while the volatility worked itself out.
Related: Bitcoin Hash Ribbon Flashes First Buy Signal Since BTC Price $25,000
Popular trader Daan Crypto Trades noted that BTC/USD remained below key resistance levels as before the data print, while fellow trader Skew said spot bidders are needed to fuel the upward trend.
“With the previous high and resistance ($71.6K) it is generally a tight area,” he added in one of the various
Data from monitoring resource CoinGlass shows liquidity thickening both above and below spot prices, with the current focus of resistance rising from $71,900 on the day.
“Still consolidating two major support and resistance levels at $67,000 and $72,000,” Daan Crypto Trades concluded.
“The longer the price solidifies below this resistance line, the more likely it is for a decline to occur in my opinion. We will wait patiently :)”
The attached chart shows recent rising highs, falling highs, rising lows, and rising lows for BTC/USD, highlighting the overall sideways trading environment.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
