Bitcoin (BTC) opened higher on August 8, breaking above $58,000 on Wall Street as U.S. unemployment data lifted sentiment.
Falling unemployment claims, ‘good news’ for Bitcoin
According to data from Cointelegraph Markets Pro and TradingView, the local BTC price on Bitstamp hit a high of $58,482, the best performance of the week.
Initial claims for U.S. unemployment benefits fell short of expectations of 233,000, sending a wave of optimism about the economy into a territory where recession fears had previously been high.
“Despite being an inherently noisy, high-frequency data release, today’s US unemployment claims will attract a lot of attention,” economist Mohamed El-Erian wrote in part on X Post ahead of the announcement.
El-Erian suggested that a print run of less than 230,000 would “indicate a gradual and orderly normalization, not a worsening of the situation.”
According to the latest data from monitoring resource CoinGlass, the increased demand for jobs has led to a sharp drop in overhead selling liquidity, with resistance levels still unfilled as of this writing.
Trading resource Material Indicators added that traders on Binance, the world’s largest exchange, placed buy orders worth $30 million worth of BTC.
However, in response, traders remain cautious given the recent range of BTC price declines.
Popular trader Roman suggests that BTC/USD could reach as high as $60,000 before reversing to the lower end of its weekly range. The theory is already gaining traction on social media.
“So far so good. Still expecting a 60k retest and then a drop back to the lows before attempting a potential reversal,” he told his X followers.
“The price movement is also showing a downward trend (decreased trading volume + rising price), so it is expected to decline when it hits the resistance line.”
Liquidity discharge below
Meanwhile, fellow investor Daan Crypto Trades pointed out that there is little liquidity left due to the downtrend.
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“It took all the liquidity down there and brought it down to under $50,000,” he summarized, referring to CoinGlass data.
“The $70K-$72K area has been an area to watch all year. It’s pretty far from the big liquidity clusters right now, but it’s starting to form as we start to consolidate here.”
Thus, the price partially filled the nearby gap that occurred on CME Group’s Bitcoin futures market, as Cointelegraph reported the previous day.
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