Bitcoin (BTC) rose $44,000 after Wall Street opened on December 8 as U.S. jobs data dented market bets on interest rate cuts.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin holds firm as jobs data unsettles US dollar
Data from Cointelegraph Markets Pro and TradingView covered recent BTC price action as risk assets reacted to the latest US inflation signals.
Nonfarm payrolls were above expectations, at 199,000 versus 190,000, while unemployment was lower than forecast at 3.7% versus 3.9%, according to an official release from the U.S. Bureau of Labor Statistics.
Both suggested that the full impact of the Federal Reserve's monetary tightening had yet to be seen, and while other data had already shown falling inflation, markets reacted nervously to the jobs numbers.
JUST IN: Interest rate futures move to May 2024 following labor market news of interest rate cuts from March 2024.
Ahead of November's jobs report, markets saw a 60% chance of rate cuts starting in March 2024.
The probability of a rate cut from January 2024 fell from 16% to 6%.… pic.twitter.com/hFYFLVP5xv
– The Kobeissi Letter (@KobeissiLetter) December 8, 2023
Still, data from CME Group's FedWatch tool says the likelihood of anything other than a rate freeze at next week's Fed meeting is virtually zero.
Diagram showing the Fed's target interest rate probabilities. Source: CME Group
The US Dollar Index (DXY) experienced particularly pronounced volatility around the data, briefly reaching its highest level since November 20 before giving back gains to trade at 103.8 at the time of writing.
US Dollar Index (DXY) 1-hour chart. Source: TradingView
Liquidity is pushing BTC price amid consolidation
While gold fell 0.8%, Bitcoin managed to avoid an outright crash even as belief that lower interest rates would come sooner faded.
Related: “Early Bull Market” – Bitcoin Price Prepares for First Weekly Golden Cross Ever
The largest cryptocurrency remained stuck in a multi-day trading range as traders looked for signs of a continuation of the trend.
“Bitcoin is still consolidating in an uptrend and remains strong after recent movement,” wrote popular analyst Matthew Hyland in an analysis on X (formerly Twitter).
“Now clear support is around $43,000.”
Fellow trader and analyst Daan Crypto Trades, meanwhile, noted significant areas of liquidity right around the spot price.
#Bitcoin liquidation map
Has formed some dense clusters on both sides as it has been in this area for some time.
Most notably: $42.9k and $43.8k
Keep an eye out for these levels. pic.twitter.com/Vz6eYVVwy5
— Daan Crypto Trades (@DaanCrypto) December 8, 2023
Sustained attention has been focused on altcoins versus Bitcoin, with Ether (ETH) and Solana's SOL (SOL) taking the lead overnight amid renewed expectations of a return of some sort of “alt season.”
“Bitcoin is still consolidating around $43,000 while Ethereum is gaining more momentum,” Michaël van de Poppe, founder and CEO of MN Trading, told X Subscribers.
“The bottom for ETH/BTC is near or perhaps already reached. The next two months will continue to be electrifying for altcoins.”
ETH/BTC 1-day chart. Source: TradingView
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.
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