Bitcoin hits a vital support level as traders anticipate labor market data.
Economic data this week could cause major fluctuations in Bitcoin’s worth.
Holding above key levels will determine Bitcoin’s trend in the coming days.
Bitcoin has moved back to its 20-week Simple Moving Average ahead of important U.S. labor market reports. This shift, noted by analyst Benjamin Cowen, occurs just before economic data that could affect financial markets. The token is currently holding near this support level, while traders wait for signals of a major move in either direction.
Importance of the 20-Week SMA
The 20-week SMA is a crucial indicator for crypto traders. It shows possible areas of assistance or obstacle based on the average expense over 20 weeks. As of September 2024, Bitcoin’s price is around $26,000 to $28,000, just above this the median. This suggests a possible consolidation phase. Cowen’s visualization shows Bitcoin rebounding slightly after a recent dip..
https://twitter.com/intocryptoverse/status/1840819790820053268
Traders are watching this level closely. In the past, holding above the 20-week SMA has often led to price increases. If Bitcoin drops below it, the market may see a bearish move, making this an important moment.
Upcoming Labor Market Data
Beyond technical measurements, scheduled employment sector announcements are expected to play a big role in Bitcoin’s value action. These figures, including non-farm payrolls and unemployment data, are due this week. The investor reaction will likely depend on the strength of these figures.
If the reports show strong job growth, there may be concerns about higher interest rates, which could impact risky assets like Bitcoin. On the other hand, weak labor data might ease worries about tight monetary policy, creating a better environment for cryptocurrencies.
Long-Term Outlook
Despite the temporary pullback, the long-term tendency is still intact. It has tested resistance at $30,000 to $35,000 several times but has not broken through. The graph shows that the token may be preparing for a bigger move depending on how it responds to the 20-week SMA.
If BTC stays above this threshold, the bullish pattern may continue. However, a drop below the SMA could lead to more bearish moves, with traders waiting for economic data to guide the price.
The post Bitcoin Drops to Key Level Before Critical Labor Market Data Release appeared first on Crypto News Land.
