Bitcoin price drops to new 1-month low after $57K US jobs data ‘fake exit’
Bitcoin (BTC) rose briefly ahead of Wall Street's open on September 6 after US employment data failed to meet expectations.
Bitcoin falls below $55,000.
Data from Cointelegraph Markets Pro and TradingView showed BTC's price action targeting $57,000 after the start of the US trading session before completely retracing.
New one-month lows followed, reaching $54,919 on Bistamp.
August nonfarm payrolls figures came in below forecasts, raising concerns about the strength of the labor market.
At the same time, a senior Federal Reserve official argued that the time has come to cut interest rates, and the decision to do so is on September 18.
“The current restrictive stance of monetary policy has been effective in rebalancing the economy and bringing inflation down,” New York Fed President John Williams said in a speech to the Council on Foreign Relations.
“With the economy now in gear and inflation on the way to 2 percent, it is now appropriate to lower the target rate for the federal funds rate and reduce the constraints in the policy.”
After the data was published, estimates from CME Group's FedWatch Tool put the market's odds for a 25-basis-point and 50-basis-point rate cut roughly flat — at 53% and 47%, respectively.
US dollar strength helped Bitcoin cancel its macro data response, jumping a full 0.3%.
Commenting on the broader picture, however, the well-known trader Daan Crypto Trades observed a long-term weakness of the dollar.
“$DXY remains very weak at ~101 support,” he told X followers about the US Dollar Index (DXY).
“I think it's only a matter of time before this breaks down to the 99.5 level and beyond. This should generally put assets at risk.
BTC price chart reveals bulls' dilemma.
Focusing on short-term BTC price movements, trader and analyst Rect Capital holds a pessimistic view for bulls.
RELATED: Arthur Hayes Threatens Bitcoin's ‘Dazzling' Trend Reversal With Price Below $50K BTC
“Bitcoin is forming a 4-hour bearish channel, the Bullish Divergence is developing,” explained part of the various X posts.
The accompanying chart shows relative strength index (RSI) prices rising against declining prices on 4-hour timeframes.
An additional post confirmed that the price continued to reject the diagonal trend line in the channel structure.
“That's why 4-hour candlesticks are more important than resistance to confirm the next trend,” he commented.
“Top to diagonal wheels first.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
