Summary:
Bitcoin declines alongside stocks and gold following unexpectedly strong US jobs data.
The US dollar index hits a three-week high as jobless claims fall below forecasts.
A BTC price target of $110,000 is becoming increasingly “likely.”
On Thursday, Bitcoin (BTC) appeared poised to approach the $110,000 mark as various macroeconomic and geopolitical factors exerted pressure on BTC prices.
US Jobless Claims Affect Risk Assets Broadly
Data from Cointelegraph Markets Pro and TradingView confirmed new local lows at $110,658 on Bitstamp.
Today’s US jobless claims data came in better than anticipated, suggesting that labor market weakness may not be as severe as previously thought.
This development led to decreased confidence regarding potential Federal Reserve interest-rate cuts, according to data from CME Group’s FedWatch Tool.
“Just like that, initial jobless claims are no longer a concern,” Ryan Detrick, chief market strategist at Carson Group, noted in a reaction on X.
Consequently, the US dollar strengthened, with the US dollar index (DXY) reaching three-week highs while cryptocurrencies, stocks, and gold decreased in value.
The environment was not aided by ongoing uncertainty surrounding the Russia-Ukraine conflict, highlighted by reports of Russian jet interceptions over Alaska.
In regards to risk-asset performance, trading resource The Kobeissi Letter characterized the stocks’ retreat as “overdue.”
“Bull markets do not progress in a linear manner,” it explained.
As previously reported by Cointelegraph, stocks and gold had been achieving record all-time highs.
$110,000 Critical for BTC Pricing
Regarding BTC price movements, crypto market insights firm Swissblock cautioned that the market is “sitting on a delicate edge.”
Related: Biggest long liquidation of the year: 5 things to know in Bitcoin this week
“Bitcoin fell from $113K and is trading below $112K: a retest of $110K appears likely,” it advised followers on X.
Swissblock further asserted that BTC/USD must recover $115,200 to have a chance at revisiting its upper trading range; if it falls below $110,000, the path toward $100,000 could open up.
“$110K is crucial for maximum pain. It’s likely to be tested, rendering Friday’s options worthless,” it added, referencing the impending $17.5 billion options expiry event.
Those bullish on crypto are focusing on the liquidity in the order book for upward movement. With the market being heavily short, a price “squeeze” seems increasingly probable.
“Observe the significant short-side dominance in potential liquidations,” trading resource TheKingfisher noted in a commentary based on proprietary data.
“$AVAX short-side represents 96.2% of pending liquidations. $ETH is at 78.3%, and $BTC is at 69.4%. This illustrates how liquidations accumulate. Savvy investors understand this is a price magnet.”
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.
