Bitcoin soared to a new 10-week high as the latest US job data beat expectations, with 177,000 jobs added in April. Despite this strong labour market, analysts warn that this could signal the Fed’s intention to maintain current interest rates longer, impacting liquidity. Meanwhile, traders are watching for possible resistance at around $97,000 and warning of potential liquidity grabs before reversals in price.
Bitcoin has surged to a new ten-week high following the release of US nonfarm payroll data, which exceeded expectations. The figures revealed that 177,000 jobs were added in April, surpassing a forecast of around 140,000. As a result, Bitcoin (BTC) and the stock market gained momentum after Wall Street opened on May 2, indicating a potentially stronger labour market than anticipated.
This strong job data portrays a less optimistic outlook for the crypto market, as it suggests that the US Federal Reserve might feel inclined to maintain current interest rate policies for longer. According to a comment from The Kobeissi Letter on X, the US economy is demonstrating resilience against tighter financial conditions.
Despite this somewhat bearish sentiment for crypto, major indices like the S&P 500 and Nasdaq Composite rose over 1.3% by the close of trading that day. Meanwhile, former President Donald Trump took to Truth Social, advocating for a rate cut from the Fed. He argued on social media that Americans have waited long enough for lower prices amid inflation concerns.
People in the financial world should note that the Fed is set to make its next interest rate decision on May 7. Current predictions, illustrated by data from CME Group’s FedWatch Tool, suggest there’s only a 2% likelihood of a rate cut at that time. This indicates that a shift in monetary policy may not be occurring soon.
Turning back to Bitcoin, many traders expressed a cautious optimism. Several are closely observing how sellers will react as Bitcoin pushes higher through $97,000. One trader, known as Skew, tweeted that sellers are defending the $97.2K mark while short positions continue to enter the market.
Fellow trader Daan Crypto Trades flagged the potential for today’s highs to serve as a liquidity grab prior to a market reversal. He noted that Bitcoin had broken out of a compressed trading range and highlighted that further movement back into the low ’90s might signal trouble.
In addition, an analyst known as TheKingfisher indicated that the bid liquidity could lead to a dip around $95,000. Trader Rekt Capital set an ambitious BTC price target of $99,000 by week’s end, provided the cryptocurrency can maintain levels above $93,500. For him, breaking past resistance is crucial for any bullish movement.
As always, it’s essential to proceed with caution, as this article does not provide specific investment advice. Remember, every trading decision carries risks, hence doing personal research before any financial decision is vital.
