Bitcoin Fails to Beat Sellers at $23.4K as US Payrolls Raise Inflation Debate

by · September 4, 2022

Bitcoin (BTC) saw fresh rejection of $23,500 resistance on August 5 as US stocks failed to embrace surprisingly strong wages data.

BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView

“Real wages collapsing” wonder about the salary statement

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as bears kept the market in its intraday trading range.

Wall Street opened with a whimper despite US payrolls for July coming in at twice estimated levels. The curious reaction prompted some analysts to argue that the numbers did not actually show economic strength, but rather existing workers taking on other jobs due to inflation.

“The 528,000 job gain in July as the labor force participation rate fell to 62.1 means most of the new jobs went to people who already had jobs,” says Peter Schiff. black.

“Falling real wages are forcing many workers to moonlight to pay the bills. If the labor market was strong, one job would be enough.”

Schiff was far from alone in his suspicions about the working relationship, with Wealthion CEO Adam Taggart among others expressing mistrust.

Kyle Bass, chief investment officer at Hayman Capital Management, meanwhile, recalled the Federal Reserve’s optimism about employment in the years before the 2008 global financial crisis.

The S&P 500 and Nasdaq Composite Index thus both opened mildly down on the day before a relief rally kicked in, while Bitcoin recovered from a fall below $23,000 to retarget range highs at the time of writing.

“Short corrections are possible, but the trend is still up. Looking pretty good on the higher time frames for Bitcoin,” Cointelegraph contributor Michaël van de Poppe added.

Nonetheless, data from the Binance order book was concerned about whale activity. In particular, it was likely that an entity would attempt to exit its position entirely at current levels, warned Maartunn, a contributor to on-chain analytics platform CryptoQuant.

“Historically, the purple class of whales has had the most influence over the Bitcoin price,” monitoring resource material indicators, which provided the figures, added.

Too many rejections?

Bitcoin traders, meanwhile, weighed the possibility of another leg amid repeated rejections at $24,500.

Related: ‘Insane Proof’ Bitcoin Has Capitulated In Last 2 Months – Analysis

Popular trading account Profit Blue eyed $20,000 as the next major level of interest should the downtrend play out.

“$BTC took out the lowest and resting liquidity built up below $22.6K,” co-trader Daan continued.

“Nearest downside liquidity now sits all the way at the high-volume node below $21K. However, the upside has those levels much closer at $23.6K-$24.7K. Seems favorable direction to me.”

Daan also noted that crypto “underperformed the rest of the markets this week,” but that this could already change.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.