Bitcoin Hovers Above Critical Support As Jobs Data Looms
(MENAFN- The Rio Times) Bitcoin traders positioned themselves defensively Thursday evening as the cryptocurrency consolidated near $111,321, ahead of Friday's pivotal U.S. nonfarm payrolls report that could determine Federal Reserve policy direction for September.
The world's largest cryptocurrency gained 0.83% over 24 hours but remained trapped within a narrow $4,977 trading range between $110,372 and $115,349.
Technical indicators painted a mixed picture with the Relative Strength Index hovering near neutral territory at 41-50, while the MACD histogram maintained bearish momentum despite shrinking negative readings.
Market participants bought deep out-of-the-money put options as hedges against potential NFP surprises. The consensus forecast calls for 110,000 job additions in August, up from July's disappointing 73,000 figure.
Goldman Sachs predicted a weaker 60,000 increase and expects unemployment to climb to 4.3%, the highest since 2021. Fed Governor Christopher Waller strengthened rate cut expectations Wednesday, calling for immediate monetary easing at the September 16-17 FOMC meeting.
Waller argued current rates sit 1.0-1.5 percentage points above neutral levels, supporting multiple cuts over six months. CME FedWatch data shows 97.6% probability of a 25 basis point reduction this month.
Recent labor market weakness provided ammunition for dovish Fed members. ADP private payrolls added just 54,000 jobs in August, down from 104,000 in July and below the 65,000 forecast.
JOLTS job openings fell to 7.18 million, the lowest in ten months, while weekly jobless claims jumped to 237,000.
Bitcoin's price action reflected the notorious "Red September" pattern, where the cryptocurrency has posted average declines of 3.77% historically.
The digital asset broke below key support around $107,500 earlier this week before recovering above $110,000. Technical analysis identified a falling wedge pattern on four-hour charts, typically preceding directional breakouts.
The Global Liquidity Index, represented by the yellow line on trading charts, showed modest improvement after recent weakness. This metric tracks worldwide money supply conditions that historically correlate with risk asset performance.
The index's stabilization provided underlying support for cryptocurrency valuations despite near-term volatility. Institutional flows remained mixed as Bitcoin ETFs recorded $332.7 million in inflows over two days, ending Ethereum's recent dominance.
BlackRock's IBIT added $72.8 million while Fidelity's FBTC led with $132.7 million. Total Bitcoin ETF assets under management reached $160 billion, demonstrating continued institutional adoption despite seasonal headwinds.
Network fundamentals showed strength with mining hashrate achieving record highs near 949 exahashes per second. Corporate treasury accumulation accelerated, with businesses buying Bitcoin four times faster than miners produced new supply.
MicroStrategy added 4,048 BTC worth $449 million in recent purchases. Critical support levels cluster between $108,000-$110,000, coinciding with the 200-day moving average and psychological round numbers.
A sustained break below this zone could trigger deeper corrections toward $100,000-$103,000. Conversely, clearing $112,500 resistance opens pathways to retest the $115,349 daily high.
Volume patterns suggested institutional caution ahead of Friday's data release. The 24-hour trading volume of $715.78 million represented modest activity relative to Bitcoin's $2.23 trillion market capitalization, indicating reduced speculative interest during the consolidation phase.
Friday's NFP release at 8:30 AM Eastern will likely determine whether Bitcoin breaks its current range. Weaker-than-expected job growth could fuel rate cut speculation and spark relief rallies in risk assets.
However, surprisingly strong employment data might strengthen the dollar and pressure cryptocurrencies lower as traders reduce Fed easing bets.
The convergence of seasonal weakness, technical consolidation, and macro uncertainty creates a pivotal moment for Bitcoin. Traders await clarity on Federal Reserve policy direction as the cryptocurrency tests its ability to overcome September's historical curse.
The world's largest cryptocurrency gained 0.83% over 24 hours but remained trapped within a narrow $4,977 trading range between $110,372 and $115,349.
Technical indicators painted a mixed picture with the Relative Strength Index hovering near neutral territory at 41-50, while the MACD histogram maintained bearish momentum despite shrinking negative readings.
Market participants bought deep out-of-the-money put options as hedges against potential NFP surprises. The consensus forecast calls for 110,000 job additions in August, up from July's disappointing 73,000 figure.
Goldman Sachs predicted a weaker 60,000 increase and expects unemployment to climb to 4.3%, the highest since 2021. Fed Governor Christopher Waller strengthened rate cut expectations Wednesday, calling for immediate monetary easing at the September 16-17 FOMC meeting.
Waller argued current rates sit 1.0-1.5 percentage points above neutral levels, supporting multiple cuts over six months. CME FedWatch data shows 97.6% probability of a 25 basis point reduction this month.
Recent labor market weakness provided ammunition for dovish Fed members. ADP private payrolls added just 54,000 jobs in August, down from 104,000 in July and below the 65,000 forecast.
JOLTS job openings fell to 7.18 million, the lowest in ten months, while weekly jobless claims jumped to 237,000.
Bitcoin's price action reflected the notorious "Red September" pattern, where the cryptocurrency has posted average declines of 3.77% historically.
The digital asset broke below key support around $107,500 earlier this week before recovering above $110,000. Technical analysis identified a falling wedge pattern on four-hour charts, typically preceding directional breakouts.
The Global Liquidity Index, represented by the yellow line on trading charts, showed modest improvement after recent weakness. This metric tracks worldwide money supply conditions that historically correlate with risk asset performance.
The index's stabilization provided underlying support for cryptocurrency valuations despite near-term volatility. Institutional flows remained mixed as Bitcoin ETFs recorded $332.7 million in inflows over two days, ending Ethereum's recent dominance.
BlackRock's IBIT added $72.8 million while Fidelity's FBTC led with $132.7 million. Total Bitcoin ETF assets under management reached $160 billion, demonstrating continued institutional adoption despite seasonal headwinds.
Network fundamentals showed strength with mining hashrate achieving record highs near 949 exahashes per second. Corporate treasury accumulation accelerated, with businesses buying Bitcoin four times faster than miners produced new supply.
MicroStrategy added 4,048 BTC worth $449 million in recent purchases. Critical support levels cluster between $108,000-$110,000, coinciding with the 200-day moving average and psychological round numbers.
A sustained break below this zone could trigger deeper corrections toward $100,000-$103,000. Conversely, clearing $112,500 resistance opens pathways to retest the $115,349 daily high.
Volume patterns suggested institutional caution ahead of Friday's data release. The 24-hour trading volume of $715.78 million represented modest activity relative to Bitcoin's $2.23 trillion market capitalization, indicating reduced speculative interest during the consolidation phase.
Friday's NFP release at 8:30 AM Eastern will likely determine whether Bitcoin breaks its current range. Weaker-than-expected job growth could fuel rate cut speculation and spark relief rallies in risk assets.
However, surprisingly strong employment data might strengthen the dollar and pressure cryptocurrencies lower as traders reduce Fed easing bets.
The convergence of seasonal weakness, technical consolidation, and macro uncertainty creates a pivotal moment for Bitcoin. Traders await clarity on Federal Reserve policy direction as the cryptocurrency tests its ability to overcome September's historical curse.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
- Latin America Mobile Payment Market To Hit USD 1,688.0 Billion By 2033
- BTCC Announces Participation In Token2049 Singapore 2025, Showcasing NBA Collaboration With Jaren Jackson Jr.
- PLPC-DBTM: Non-Cellular Oncology Immunotherapy With STIPNAM Traceability, Entering A Global Acquisition Window.
- Bitget Launches PTBUSDT For Futures Trading And Bot Integration
- Ecosync & Carboncore Launch Full Stages Refi Infrastructure Linking Carbon Credits With Web3
- Bitmex And Tradingview Announce Trading Campaign, Offering 100,000 USDT In Rewards And More
More Story
Comments
No comment