Bitcoin Price Likely to Slip Below $60K After Worrying NFP Data

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As a seasoned crypto investor with battle scars from numerous market cycles, I find myself standing on the precipice of uncertainty, gazing at Bitcoin’s (BTC) teetering above $60K. My heart is filled with a mix of anticipation and trepidation as I reflect on my journey through this volatile world of digital gold.

Uncertainty encapsulates crypto markets as Bitcoin (BTC) hovers above $60K. While some altcoins are defying this trend and rallying, others await BTC’s signal. The Iran-Israel war has pushed investors to be extra cautious since it triggered a double-digit crash earlier this week. In this article, CoinGape explores what’s next for Bitcoin price if there’s more pain ahead of the Nonfarm Payrolls (NFP). 

US Nonfarm Payrolls Likely to Crash Bitcoin Price

Based on our previous analysis, Bitcoin’s seven-month consolidation pattern has typically seen local bottoms or reversals at the start of each month and local tops towards the end of the third week. Applying this pattern to the current market situation, the peak of $66,449 reached on September 27 could be considered a short-term local top. Following this high, Bitcoin’s price dropped by 10%, and now it’s trying to recover. It’s plausible that another local peak for Bitcoin might emerge between October 7 and 10.

Bitcoin Price Likely to Slip Below $60K After Worrying NFP Data

This short-term Bitcoin price rally is the dead cat bounce that investors should be aware of, especially if Bitcoin shows weakness around the critical resistance level of $65K. A failure to flip the said barrier into support could trap impatient and early bulls when there is a crash.

An additional reason to anticipate a brief recovery (dead cat bounce) for Bitcoin might be the geopolitical conflicts arising from the Iran-Israel conflict. This suggests a modest possibility of price increase, but it may not be substantial. Consequently, if Bitcoin’s price fails to exceed $65K during this short-term uptrend, another decline could occur.

How Nonfarm Payrolls Affect BTC?

The event known as Nonfarm Payrolls (NFP) has significant impact on the cryptocurrency markets, even if just for the immediate future. With 254K jobs added in September – more than anticipated at 140K – it might trigger a ‘risk-on’ environment, leading to a quick increase in the prices of Bitcoin and other major altcoins.

As a researcher, I’ve found an unexpected delight in the recent Non-Farm Payroll (NFP) data: the unemployment rate has dropped to 4.1%, lower than the anticipated 4.2%. This revelation exerts pressure on the Federal Reserve to maintain higher interest rates and forgo rate cuts, which could in turn bolster the U.S. dollar and potentially dampen risk-on assets.

BTC Price Forecast: No Optimism Yet

The four-hour Bitcoin price graph doesn’t exhibit obvious positive indicators since it’s trading below the $61,800 resistance point. It’s likely that this prolonged stabilization within the range between $60,300 and $61,800 will persist for investors.

In simpler terms, if the NFP data turns out to be hotter than anticipated, it might trigger a rebound attempt above the $60K mark. However, until the $65K resistance is successfully surpassed, chances for a prolonged upward trend remain slim. Instead, investors should anticipate the market to continue its downward trajectory. A drop below the $60.3K support could lead to a quick 4%-5% fall towards crucial support levels at $57.9K and $57.2K.

Bitcoin Price Likely to Slip Below $60K After Worrying NFP Data

According to well-known analyst CryptoCapo, the current period of consolidation for Bitcoin seems strikingly similar to its price trend in March 2020. If this pattern holds, he predicts it might result in a decline. His advice to investors is to prioritize safety.

Bitcoin Price Likely to Slip Below $60K After Worrying NFP Data

Instead of saying “On the other hand, overcoming the $61.8K barrier would place Bitcoin within another resistance area, stretching from $63.4K to $65K,” you could rephrase it as “However, if Bitcoin can surpass the $61.8K level, it will encounter another potential resistance, spanning from $63.4K to $65K.” If Bitcoin bulls successfully break through the $65K barrier, this would indicate a substantial buying interest and potentially push Bitcoin towards $70K.

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2024-10-04 17:26