- Bitcoin price briefly spiked above $57,000 before retreating to a new one-month low of $54,919 on Bitstamp after the U.S. jobs data release.
- The lower-than-expected U.S. nonfarm payrolls data for August added to concerns over labor market strength, while a Federal Reserve official argued for reducing interest rates.
- The U.S. dollar index (DXY) saw an uptick, jumping 0.3% as Bitcoin canceled out its reaction to the macro data, with analysts pointing to potential further DXY weakness benefiting risk assets like Bitcoin.
The price of Bitcoin experienced high volatility on September 6th, falling to a new 1-month low after the release of the latest US jobs report. The weaker-than-expected jobs data sparked erratic price moves and heavy selling.
Price Action Overview
BTC fell below $55,000 after initially rising to $57,000 leading up to the jobs report. The largest cryptocurrency hit a low of $54,919 on Bitstamp, extending its recent downtrend. Traders were whipsawed by the conflicting signals from the jobs data and the crypto markets.
Macroeconomic Context
The August nonfarm payrolls increased by 315,000 jobs, below forecasts of 318,000. This raised concerns about the labor market losing momentum. However, a senior Federal Reserve official argued it’s time to start reducing interest rates, with a decision coming on September 18.
Market probabilities for the size of a rate cut now show roughly even odds of a 25 or 50 basis point cut. The US dollar index jumped following the jobs data, weighing on Bitcoin. But some analysts see enduring dollar weakness ahead.
Short-Term Technicals
On short timeframes, Bitcoin is forming a downtrending channel with bullish divergence developing. This indicates RSI momentum is rising despite lower prices, signaling a potential trend shift. However, BTC continues to face rejection at a key diagonal resistance level.
Conclusion
The conflicting macroeconomic data and technical picture has created dilemmas for both bulls and bears in the crypto markets. Bitcoin remains stuck in its recent trading range under $60,000 as traders evaluate the impact of central bank policies, jobs data, and technical levels to determine the next major move.
