The recent release of the Non-Farm Payroll data has had a significant effect on the price of Bitcoin. With the data indicating positive job growth in the United States, market sentiment is favoring a bullish outlook for the US dollar. As a result, Bitcoin experienced a downward movement in response to the positive report. Traders and investors are closely examining this reaction, assessing its implications for the future trajectory of Bitcoin. The market’s response to the Non-Farm Payroll data highlights the complexity and unpredictability of the cryptocurrency market, reminding enthusiasts of the necessity for diligent analysis and monitoring of economic indicators when predicting Bitcoin’s price movements.
The US Bureau of Labor Statistics released the Nonfarm Payroll data for May, reporting a significant increase of 339,000 jobs – a number higher than market expectations. This positive data led to a swift market reaction, with the US Dollar Index reversing its previous losses and surpassing the 103.50 level. The benchmark 10-year US Treasury bond yield also experienced an upward movement, rebounding to 3.65%. However, the market expectations for the US Federal Reserve remain unchanged.
The release of positive Nonfarm Payroll data can impact the price of Bitcoin in various ways, as strong job growth is generally perceived as a positive economic indicator. It can lead to increased investor confidence and potentially contribute to a stronger US dollar. However, the exact effect on Bitcoin’s price can differ, influenced by factors such as market sentiment, macroeconomic conditions, and investor preferences. It’s crucial to closely monitor market reactions and trends to evaluate the potential impact on Bitcoin’s price after the Nonfarm Payrolls data release.
Currently, Bitcoin is priced at $26,954 and holds the top spot on CoinMarketCap, with a market capitalization of $522 billion. Before the release of the US non-farm payroll figures, Bitcoin exhibited bullish momentum around the $27,200 level. After the strong NFP data, a correction in Bitcoin prices occurred, causing it to trade below the $27,000 level. The 50-day exponential moving average on the hourly timeframe acted as resistance around the $27,200 level, pushing Bitcoin prices lower.
Bitcoin is likely to find support around the $26,600 level, and a break below this point has the potential to trigger further downside momentum. It’s worth noting that Bitcoin has formed a descending triangle pattern when observing the larger timeframes, which typically indicates a breakout. This descending triangle pattern and the double bottom support at $26,600 is providing resistance around the $27,000 to $27,500 levels.
In terms of potential price movement, a break below $26,600 could expose Bitcoin to the next support level at $26,000. Conversely, overcoming the $27,275 level could push Bitcoin towards $27,500 or even higher, around the $27,800 level. For now, it is essential to watch the $27,250 level and consider taking positions until the $26,600 level. Staying updated on market trends and price movements is crucial when making informed decisions regarding Bitcoin trading.
Source: Cryptonews
