Oct 4, 2024

6thTrade

Bitcoin is on the move, inching closer to the $62,000 mark, as US nonfarm payrolls figures exceeded expectations. Data from Cointelegraph Markets Pro and TradingView showed BTC nearing $62,000 on Bitstamp, gaining around 2% on the day.

The stronger-than-expected jobs report, which revealed 254,000 jobs added in September compared to the forecasted 147,000, also gave a boost to US equities. The S&P 500 and Nasdaq Composite both saw gains as markets opened positively.

"The clear answer here is that risk appetite is incredibly strong," noted The Kobeissi Letter on social media platform X. “For the first time in years, markets are interpreting all news as good news.” However, Kobeissi added a note of caution, pointing out that upcoming Consumer Price Index (CPI) inflation data, set to be released on October 10, would play a crucial role in sustaining this optimistic market sentiment. Investors are hoping the data will support the idea of a "soft landing" for inflation, signaling that the Federal Reserve’s strategy could successfully balance growth and inflation. $BTC

In light of the jobs report, market expectations shifted significantly regarding the Federal Reserve’s next move on interest rates. Odds for a smaller 25 basis point rate cut in November surged to 93%, according to CME Group’s FedWatch Tool. Before the release of the employment figures, there was a near 50% expectation of a larger 50 basis point cut. Kobeissi remarked on this, saying, "So how is this bullish if the so-called ‘Fed pivot’ has already been priced in?"

Bitcoin Price Pushes Through Sell Barriers

Bitcoin's price action also took out a significant line of sell orders at $61,830 in response to the employment data, as per data from CoinGlass. Popular trader Daan Crypto Trades noted that Bitcoin might push even higher to take out additional liquidity—potentially $300 million in sell orders. "Large cluster of sell orders is placed around the $62.5K region. It will be interesting to see if the price tries to fill those today," he wrote to his followers on X.

Despite the recent volatility, some analysts maintain that Bitcoin’s overall price action remains on track for further bullish movement. Trader and analyst Rekt Capital pointed out that BTC recently completed a "picture-perfect" retest of a key level. Sharing insights on the weekly chart, he noted that Bitcoin has successfully retested a downward-sloping resistance line—now acting as support—suggesting potential for more upward momentum.

Bitcoin's current rally appears to be holding firm, driven by renewed optimism across risk assets, as both the crypto and traditional markets see reasons to hope for a favorable shift in economic policy.

#6thTrade #U.S.UnemploymentNewLow #WeAreAllSatoshi #Market_Update #MarketSentimentToday


Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.