Highlights:
Bitcoin declines alongside stocks and gold due to strong US jobs data.
The US dollar index hits its highest level in three weeks after jobless claims fall below forecasts.
$110,000 is becoming an increasingly plausible price target for BTC.
On Thursday, Bitcoin (BTC) appeared “likely” to test the $110,000 mark as macroeconomic and geopolitical factors contributed to its price decline.
US Jobless Claims Impact Risk Assets
Data from Cointelegraph Markets Pro and TradingView confirmed new local lows of $110,658 on Bitstamp.
The US jobless claims data indicated less labor market weakness than previously thought.
This change led to reduced confidence about potential Federal Reserve interest-rate cuts, according to CME Group’s FedWatch Tool.
“And just like that, initial jobless claims are no longer a concern,” remarked Ryan Detrick, chief market strategist at Carson Group, as part of a tweet.
Consequently, the strength of the US dollar surged, with the dollar index (DXY) reaching three-week highs, while crypto, stocks, and gold experienced declines.
Uncertainty over the Russia-Ukraine conflict added to the negative sentiment, especially amid reports of Russian jet interceptions over Alaska.
The Kobeissi Letter trading resource described the stock market pullback as “overdue,” stating, “Healthy bull markets do not move in a straight line.”
As reported by Cointelegraph, stocks and gold had recently reached record highs.
$110,000 Critical for BTC Price
Regarding BTC price action, Swissblock indicated that the market is “in a delicate balance.”
Related: Largest long liquidation of the year: 5 things to watch in Bitcoin this week
“Bitcoin has fallen below $113K and is hovering under $112K: a retest of $110K seems imminent,” it cautioned followers on X.
Swissblock advised that BTC/USD must reclaim $115,200 to have a chance at reaching the top of its range. Conversely, losing $110,000 could pave the way to a $100,000 target.
“$110K = max pain. Likely to be tested, rendering Friday’s options worthless,” it noted, referring to the forthcoming $17.5 billion options expiry event.
Bullish sentiment in crypto focused on order-book liquidity. With many markets heavily short, a potential “squeeze” upward seemed increasingly likely.
“Observe the dominance of short positions in potential liquidations,” TheKingfisher trading resource remarked in a commentary on proprietary data.
“$AVAX short positions 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 price magnet.”
This article does not provide investment advice or recommendations. Each investment and trading decision carries risks, and readers should undertake their own research.
