Bitcoin (BTC) dipped below the $70,000 mark on Friday as Wall Street opened, responding to unexpectedly weak U.S. employment data that did little to buoy investor sentiment. The cryptocurrency, along with broader risk assets, saw a 3% decline, hitting $68,176 on Bitstamp, according to data from TradingView.
U.S. Nonfarm Payrolls Disappoint
The Bureau of Labor Statistics (BLS) reported a loss of 92,000 jobs in February, a stark contrast to the 58,000 increase that was anticipated. The unemployment rate also ticked up to 4.4%, signaling a weakening labor market. This marks only the second monthly job loss since the 2020 pandemic, according to The Kobeissi Letter.
Market Reaction and Fed Outlook
The disappointing jobs report did not provide the expected tailwind for Bitcoin and other risk assets. Instead, it reinforced the Federal Reserve’s hawkish stance, with markets still anticipating just one interest rate cut this year, as indicated by CME Group’s FedWatch Tool.
Technical Analysis: BTC Struggles to Break Out
Bitcoin’s price action has been characterized by repeated failed attempts to break above key resistance levels. J. A. Maartunn, a contributor to CryptoQuant, noted that deviations above the range high have consistently been met with selling pressure. The latest deviation around $71,000 may again act as a trap for late long positions, Maartunn warned.
Interacting with Long-Term Levels
Bitcoin’s price has returned to interact with significant long-term technical levels, including the 200-week exponential moving average (EMA) and the old all-time high from 2021. Keith Alan, cofounder of Material Indicators, observed that Bitcoin appears to be ’round tripping’ the range, a pattern that has repeated in recent months.
Gold Shines Amid Market Turmoil
While Bitcoin and stocks fell, gold emerged as a safe haven, gaining 1.5% to $5,155 per ounce. The precious metal’s performance highlights the ongoing search for stable assets in a volatile market environment.
Looking Forward
The continued pressure on Bitcoin and other risk assets underscores the broader economic challenges. As the labor market weakens and the Fed remains cautious, the path to recovery for Bitcoin and the broader crypto market remains uncertain. Investors will be closely watching for any signs of a shift in the Fed’s policy or a resurgence in economic indicators that could provide a more favorable environment for risk assets.
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