Main Highlights:
Bitcoin declines alongside stocks and gold due to unexpectedly strong US job data.
The US dollar index hits a three-week high as jobless claims come in lower than anticipated.
$110,000 now appears to be a “likely” price target for BTC.
On Thursday, Bitcoin (BTC) seemed “likely” to approach the $110,000 mark as macroeconomic and geopolitical factors impacted BTC’s price negatively.
Pressure from US jobless claims affects risk assets universally
According to data from Cointelegraph Markets Pro and TradingView, new local lows of $110,658 were confirmed on Bitstamp.
The US jobless claims data was better than expected, indicating that labor market weaknesses may not be as severe as previously thought.
This led to a decrease in market confidence regarding potential interest rate cuts by the Federal Reserve, according to data from CME Group’s FedWatch Tool.
“Just like that, initial jobless claims are off the worry list,” commented Ryan Detrick, chief market strategist at Carson Group, in a post on X.
The strength of the dollar increased significantly, with the US dollar index (DXY) reaching a three-week peak while cryptocurrencies, stocks, and gold all saw declines.
The situation was further complicated by uncertainty surrounding the Russia-Ukraine conflict, including reports of Russian jet interceptions over Alaska.
Addressing the behavior of risk assets, trading platform The Kobeissi Letter termed the pullback in stocks as “overdue.”
“Healthy bull markets do not move in a straight line,” it explained.
As reported by Cointelegraph, stocks and gold had previously been achieving record highs.
$110,000 is a critical juncture for BTC price
Regarding Bitcoin’s price movements, the crypto market analysis firm Swissblock cautioned that the market “is in a fragile state.”
Related: Most significant long liquidation of the year: 5 points to consider in Bitcoin this week
“Bitcoin has dropped below $113K and remains under $112K: a retest of $110K seems imminent,” it alerted followers on X in a post.
Swissblock indicated that BTC/USD must reclaim $115,200 to have a chance of revisiting the upper range. Conversely, dropping below $110,000 would likely pave the way towards the $100,000 level.
“$110K = max pain. This level is likely to be touched, making Friday’s options worthless,” it noted, referring to the expected $17.5 billion options expiry event.
Optimistic crypto investors focused on favorable liquidity in the order book. With the market heavily short, a “squeeze” towards higher prices appeared increasingly likely.
“Notice the significant dominance of short-side liquidations,” trading entity TheKingfisher reiterated in its commentary based on proprietary data.
“$AVAX short positions represent 96.2% of pending liquidations. $ETH is at 78.3%. $BTC stands at 69.4%. This is how liquidations accumulate. Savvy investors recognize this as a price magnet.”
This article does not offer investment advice or recommendations. All investments and trading decisions involve risk; readers should conduct their own research before making decisions.
