Bitcoin price gives up key trend line as US jobs data deals 5% losses

Bitcoin price gives up key trend line as US jobs data deals 5% losses

by Virtusenews
9. October 2022
Bitcoin price gives up key trend line as US jobs data deals 5% losses


 stayed near the lower end of its trading range into Oct. 8 after bulls failed to recoup macro-induced losses.


BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

$20,000 disappears into weekend

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $19,500 at the time of writing.

Lows of $19,340 appeared on Bitstamp the day prior before consolidation began.

The pair had seen a swift, if predictable, downside accompanying the United States unemployment numbers, where crypto markets copied equities while the U.S. dollar gained.

U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView

Michaël van de Poppe, founder and CEO of trading firm Eight, described the unemployment rate as “way lower than expected.”

“This week economic’s data was conflicting,” he continued:

“Positive in the last part of the week with unemployment dropping from 3.7% to 3.5%, while earlier this week job openings and PMI data came in badly. Eyes now focused on earnings season, PPI and CPI coming week.”

On-chain analytics resource Material Indicators, meanwhile, noted the ongoing importance of Bitcoin’s 50-day moving average (MA) as resistance.

Currently, at just under $20,000, the 50MA was also joined by the 21MA after the unemployment data release, the latter subsequently being reclaimed.

“This week, Bitcoin had 4 consecutive rejections from the 50-Day MA, and on today’s positive U.S. Unemployment Report, bulls gave back the R/S flips $20k, the 2017 Top and the 21-Day MA,” Material Indicators summarized.

BTC/USD 1-day candle chart (Bitstamp) with 21, 50MA. Source: TradingView

Liquidations mount as market burns longs

As a result of the snap return to volatility, meanwhile, BTC long traders suffered almost $23 million in liquidations on Oct. 7.

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