Bitcoin experienced a notable decline, falling over 2% to settle under the $109,500 mark on Thursday, subsequent to the release of US jobs data that ultimately failed to provide a boost to the cryptocurrency. Despite presenting a lack of strength, particularly as bulls struggled to convert the resistance level around $112,000 into support, analysts are eyeing potential price recoveries.
Data sourced from Cointelegraph Markets Pro and TradingView revealed that BTC/USD losses surpassed 2% on the day, reflecting ongoing vulnerability in the market. Popular trader BitBull highlighted that Bitcoin had been rejected at a significant resistance level. In a post shared on X, BitBull emphasized that until the daily timeframe reclaims the $114,000 mark, any movements in Bitcoin’s price could serve merely as bull traps. The longer it takes to surpass this threshold, the more likely a major correction before any potential reversal becomes.
Market participants are bracing for a possible retest of the $100,000 support level in the short term, as noted in reports. However, on a sprightly note, crypto market insight firm Swissblock pointed out that critical support now exists at approximately $110,000, identified as an area of high trading volume. They indicated that resistance in the upward trajectory was diminishing. In a communication on X, Swissblock expressed optimism, stating, “Bitcoin is breaking out from the critical zone: a straight slide to $100K was never the base case.” They further mentioned that for Bitcoin to advance past resistance levels between $113.6K and $115.6K, fresh upward momentum would be necessary.
Amid the declines in the cryptocurrency space, gold has emerged as a standout performer, outpacing both crypto assets and US stocks during this current bull market. The macroeconomic landscape appears to favor the stock market following indications of a weaker labor market, which bolsters the likelihood of the Federal Reserve reducing interest rates on September 17. Yet, amidst rising inflation, some firms, such as Mosaic Asset, remain cautious. They highlighted that the anticipated cut in rates might be a singular occurrence, reflecting ongoing inflationary pressures.
The Kobeissi Letter also noted the significant shift in market dynamics, reporting on gold’s recent breakout that has left cryptocurrencies lagging. They attributed this performance to a combination of market expectations surrounding prolonged inflation and increased deficit spending, which has flooded the US Treasury market with supply. As a result, gold is being recognized as the global safe haven asset.
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