Main Highlights:
Bitcoin declines alongside stocks and gold following unexpectedly strong US jobs data.
The US dollar index climbs to its highest point in three weeks as jobless claims fall short of estimates.
$110,000 is becoming a more plausible BTC price target.
On Thursday, Bitcoin (BTC) appeared “likely” to test the $110,000 mark as macroeconomic and geopolitical elements contributed to its price decline.
US Jobless Claims Affect Risk Assets Universally
Data sourced from Cointelegraph Markets Pro and TradingView confirmed new local lows of $110,658 on Bitstamp.
The US jobless claims figures came in below expectations today, indicating that the labor market may not be as weak as previously thought.
This led to diminished market confidence regarding potential interest rate cuts from the Federal Reserve, as noted by the CME Group’s FedWatch Tool.
“Just like that, initial jobless claims are no longer a concern,” remarked Ryan Detrick, chief market strategist at Carson Group, in a post on X.
As a result, the US dollar gained strength, with the US dollar index (DXY) reaching three-week highs, contributing to declines in crypto, stocks, and gold.
The atmosphere was further clouded by uncertainties surrounding the Russia-Ukraine conflict, particularly reports of Russian jet interceptions near Alaska.
In discussing risk-asset trends, trading resource The Kobeissi Letter described the stock market pullback as “overdue.”
“Healthy bull markets do not advance in a straight path,” they elaborated.
As noted by Cointelegraph, stocks and gold had previously been reaching peak values.
$110,000: A Crucial Point for BTC
Regarding BTC price movements, crypto market insight firm Swissblock cautioned that the market “is in a fragile state.”
Related: Largest long liquidation this year: 5 key things to note in Bitcoin this week
“Bitcoin has dropped from $113K and is hovering just below $112K: a retest of $110K appears imminent,” they warned followers on X.
Swissblock argued that BTC/USD must reclaim $115,200 to have a realistic chance of revisiting its upper range. Conversely, failing to hold above $110,000 could set the stage for a drop toward $100,000.
“$110K represents maximum discomfort. It’s likely to be tested, rendering Friday’s options worthless,” they mentioned, alluding to the upcoming $17.5 billion options expiry.
Bullish sentiments in the crypto market are focusing on higher exchange order-book liquidity. With a significant number of shorts in play, a “squeeze” upwards seems increasingly likely.
“Note the dominant short-side presence in potential liquidations,” commented trading resource TheKingfisher emphasized based on proprietary data.
“$AVAX short-side is 96.2% of pending liquidations. $ETH is at 78.3%. $BTC is at 69.4%. This is how liquidations accumulate. Informed traders recognize this as a price magnet.”
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct independent research.
