US Jobless Claims Indicate Stability as Bitcoin Nears Critical Inflection Point

US initial jobless claims fell to 215,000, indicating a stable labour market and influencing investor sentiment towards BTC. Fed Chair Jerome Powell noted higher tariffs may lead to inflation and slow growth, reinforcing cautious Fed policies. The ECB reduced interest rates to 2.25% amid economic pressures. Bitcoin is considered at an “inflection point”, suggesting crucial price movements within the $83,700 to $85,200 range, necessitating a break above $85,000 for bullish momentum.

As of April 17, the US initial jobless claims have recorded a decline to 215,000, which is below the anticipated figure of 225,000. This decrease suggests a stable labour market, indicating fewer individuals are facing unemployment due to concerns surrounding US tariffs. Initial jobless claims serve as a reliable economic indicator, influencing investor attitudes toward risk assets such as Bitcoin (BTC).

Federal Reserve Chair Jerome Powell commented on the ramifications of tariffs during a press conference held on April 16, noting that the announced tariff increases were significantly larger than expected, resulting in anticipated higher inflation and slower economic growth. Additionally, Powell affirmed that the Federal Reserve has no imminent plans for bailouts or interest rate reductions, consistent with his earlier remarks from April 4, indicating a cautious stance amidst prevailing economic uncertainties.

In response to the economic pressures stemming from US trade tariffs, the European Central Bank (ECB) has reduced its interest rates from 2.50% to 2.25%. This adjustment marks the ECB’s seventh rate cut in the past year, bringing borrowing costs to their lowest levels since late 2022.

Recent jobless claims data suggests a bearish outlook for risk assets like Bitcoin in the short term, as a stable labour market diminishes the likelihood of rate cuts that usually foster speculative investment. Bitcoin prices have remained within a narrow range, struggling to surpass the $86,000 threshold. Analyst Titan of Crypto considers Bitcoin to be at a critical juncture termed an “inflection point.”

An inflection point refers to a pivotal moment in trading where market momentum might significantly shift. Titan has observed that Bitcoin’s price is forming a triangle pattern on the hourly chart and indicates potential movement as the Relative Strength Index (RSI) strives to break resistance above 50.

Trader Magus remarked that Bitcoin is currently consolidating between $83,700 and $85,200. For the bullish trend to maintain, BTC must decisively break the $85,000 mark soon; otherwise, the long-term charts may reveal potential bearish risks.

Disclaimer: This article does not offer investment advice. All investments carry risks, and individuals should thoroughly research before engaging in any investment decisions.