Bitcoin (BTC), which was at $23,500 resistance, saw a new rejection on Aug. 5, as the United States failed to embrace surprisingly strong payroll data.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Payroll print: “Collapsing real salaries” is a joke
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD was the bear market, which kept the market within its intraday trading range.
Wall Street opened with a whimper, despite the fact that U.S. payrolls for August were twice as high as expected. Some analysts suggested that the numbers didn’t show economic strength but instead showed existing workers taking up second jobs because of inflation.
Peter Schiff, a gold bug, responded that 528K new jobs were created in July when the labor force participation rate dropped to 62.1. This means that most of these jobs went to people already employed.
“Collapsing real wage levels force many workers to work as a side hustle to make ends meet. One job would suffice if the labor market was strong.
Schiff wasn’t the only one to be concerned about the state employment. Wealthion CEO Adam Taggart was also skeptical.
This 6-sigma blowout jobs report smells bad 2 quarters of contracting GDP. Fed busy hiking, corp margins contracting, major businesses freezing hires or actively terminating workers — these are not indicators of strong job creation.
Adam Taggart (@menlobear), August 5, 2022
Kyle Bass, Hayman Capital Management’s chief investment officer, recalled that the Federal Reserve was optimistic about employment in the years before the 2008 Global Financial Crisis.
There will not be a housing crisis unless there is a significant amount of unemployment. It’s never left my memory. They were wrong. #recession #Jobs
Kyle Bass (@Jkylebass), August 5, 2022
So, the S&P 500 Index and Nasdaq Composite Index opened slightly lower on the day before a relief rally entered. Bitcoin also recovered from a drop below $23,000 to retarget the range highs at the writing.
“Short corrections may be possible, but the trend is still up. Michael van de Poppe, a Cointelegraph contributor, said that Bitcoin looks quite good in the longer timeframes.
However, some were concerned about whale activity based on data from Binance’s order book. One entity, Maartunn, a contributor of on-chain analytics platform CryptoQuant, was known to be trying to leave its current position.
A whale that wants to escape was/is controlling market. These steps were taken by Purple ($100k-1M). To support price, bid below To drive the price up, market buying The price was pushed up to asks 4. Market selling was heavy 5. Bids below are erased Data by @Mtrl_Scientist pic.twitter.com/XY8fezFHyd
— Maartunn (@JA_Maartun) August 5, 2022
“Historically, the price of Bitcoin has been most affected by the purple whale class,” Material Indicators, a monitoring resource, said.
Too many rejections
Bitcoin traders considered the possibility of a new leg down amid repeated rejections at $24,500.
Related: Analysis of Bitcoin’s capitulation in the past 2 months – analysis
Popular trading account Profit Blue has set $20,000 as its next level of interest in the event that the downtrend continues.
#Bitcoin perspective update. The double top pattern I warned about at 24k has been very well executed. There are still some downsides to this, so let’s see how the 20k level holds up. pic.twitter.com/vyrV1rZCvO
— PROFIT BLUE (@profit8lue August 5, 2022
Daan, a fellow trader, said that $BTC “took out the lows” and rested liquidity that had been build up to below $22.6K.
“Nearest downside liquidity now sits all the way at high volume node under $21K. These levels are much closer to the upside at $23.6K-24.7K. It seems like a positive direction. “$BTC and $ETH since the futures opened this week. This is a fact. Crypto has outperformed the rest of the markets this Week. We are working to close this gap. pic.twitter.com/6JzM7MSRFf
— Daan Crypto Trades (@DaanCrypto) August 5, 2022
Daan also mentioned that crypto was “underperforming other markets this week”, but that this could be changing.
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