Key highlights:
Bitcoin declines alongside stocks and gold due to stronger-than-expected US jobs figures.
The US dollar index hits its highest point in three weeks as jobless claims fall below forecasts.
$110,000 emerges as a “likely” target for BTC price next.
On Thursday, Bitcoin (BTC) appears “likely” to approach $110,000 as macroeconomic and geopolitical factors contribute to BTC price decline.
US jobless claims exert pressure on risk assets
Data from Cointelegraph Markets Pro and TradingView confirmed new local lows of $110,658 on Bitstamp.
The recent US jobless claims report came in lower than anticipated, suggesting that weakness in the labor market may not be as severe as previously believed.
This has led to diminished market confidence regarding potential Federal Reserve interest rate cuts, according to data from CME Group’s FedWatch Tool.
“Now, initial jobless claims are off the table as a concern,” stated Ryan Detrick, chief market strategist at Carson Group, in a reaction on X.
As a result, the US dollar strengthened significantly, with the US dollar index (DXY) reaching three-week highs, contributing to the declines in crypto, stocks, and gold.
Market sentiments were further affected by uncertainty surrounding the Russia-Ukraine conflict, especially with reports of Russian jets being intercepted over Alaska.
The Kobeissi Letter noted that the recent pullback in stocks was “overdue,” commenting on the behavior of risk assets.
“Robust bull markets do not follow a linear path,” they explained.
As Cointelegraph indicated, stocks and gold had previously achieved record highs.
$110,000 pivotal for BTC value
Regarding BTC price movements, Swissblock cautioned that the market “sits in a fragile equilibrium.”
Related: Largest long liquidation of the year: 5 key points about Bitcoin this week
“Bitcoin has dropped below $113K and is now hovering beneath $112K: a retest of $110K seems imminent,” they warned followers on X in a recent post.
Swissblock emphasized that BTC/USD must reclaim $115,200 to have a chance at returning to the upper range. Failure to maintain above $110,000 could lead to a decline toward the $100,000 level.
“$110K = max pain. It’s likely to be reached, possibly rendering Friday’s options worthless,” they added, referencing the upcoming $17.5 billion options expiry event.
Optimistic crypto analysts focused on the liquidity at higher exchange order-book levels. With a heavily short market, a “squeeze” upward seemed increasingly likely.
“Observe the dominant short-side presence in potential liquidations,” TheKingfisher highlighted in a commentary on proprietary data.
“$AVAX shorts account for 96.2% of pending liquidations. $ETH at 78.3%. $BTC at 69.4%. This is how liquidations accumulate. Savvy investors recognize this as a pull for price.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
