Bitcoin (BTC) hit $57,000 at the opening of Wall Street on September 5, as U.S. stocks rose following the release of macroeconomic data.
BTC/USD 1-hour candlestick chart. Source: TradingView
U.S. jobs data boosts hopes for bumper rate hike
According to data from Cointelegraph Markets Pro and TradingView, the BTC price appeared to briefly reverse the downtrend that began after the previous day’s close.
BTC/USD fell 2.3% on the day, with some relief coming from a rebound in U.S. stocks as macroeconomic data supported the possibility of an upcoming rate cut.
Among the data released, there was a notable shortfall in private-sector payrolls, which rose by 99,000 from the expected 144,000.
“This is the smallest increase since 2021,” trading resource The Kobeissi Letter wrote as part of its response to X.
“What’s happening in the labor market?”
According to the latest estimates from CME Group’s FedWatch tool, the market continues to accept the possibility that the Federal Reserve will cut rates more significantly at its next meeting on September 18.
A similar picture emerged in jobs data released on September 4. The Job Openings and Labor Turnover Survey (JOLTS) showed job openings fell to 7.67 million from an expected 8.1 million.
In response to X, macroeconomic commentary account Macro Dose described the results as “significantly worse than expected.”
“As the labor market continues to cool and the Fed is likely to focus more on its hiring mandate, we will closely watch the remaining data coming out this week to make a decision on whether and by how much to cut rates at its meeting later this month,” they concluded.
Fed Target Rate Probability. Source: CME Group
As Cointelegraph reported, risk-asset investors, including those focused on cryptocurrencies, are expecting a larger rate cut to bring liquidity into the market.
BTC Price “Double Bottom” Expected
Turning to Bitcoin itself, market participants felt the need to wait for the last unemployment data from September 6 to get a clue as to Bitcoin’s trend intentions.
relevant: Bitcoin Trading Volume Plummets 30% in 6 Months as BTC Price ‘Lowers Interest’
Nonetheless, Keith Alan, co-founder of trading resource Material Indicators, warned that the August low of $49,500 could still act as a magnet for a “double bottom.”
In his latest video analysis, Allen also suggested that this would provide catharsis for Bitcoin’s overall bull run, as it would provide a backtest for previously controversial areas.
“For that purpose, I’d really like to see this retest, and since it’s broken at $50k, could it go lower?” he asked.
BTC/USD 1-week candlestick chart. Source: TradingView
A key trend line to watch is the 50-week simple moving average (SMA), which is currently at $53,355.
Popular trader CrypNuevo suggests that BTC/USD could bounce just above $60,000 if unemployment data provides another positive signal for risk assets.
BTC liquidation levels, Binance. Source: Heatmap Crypnuevo
“Some liquidations are collecting between $60,000 and $62,000 over a 7-day period. Heatmap,” he wrote next to exchange order book data.
“It looks tough, but if the labor market data is good tomorrow, we should be able to get there. It’s an important day for markets as they gear up for the next FOMC meeting.”
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.