Bitcoin Holds Firm Above $29,000 Despite Disappointing NFP Data

Bitcoin’s price has managed to hold above the $29,000 mark despite the disappointing US Nonfarm Payrolls (NFP) data for July. The NFP figures revealed an increase of 187,000 jobs, falling short of the market’s expectation of 200,000. As a result, this lower-than-expected employment growth has bolstered the possibility of a rebound in risk assets such as Bitcoin and Ethereum.

Analysts suggest that a potential surge in selling pressure on the US Dollar could act as a catalyst for a Bitcoin rally, propelling the cryptocurrency past the crucial psychological threshold of $30,000. However, market observers remain cautious, as the macroeconomic outlook depends on the trajectory of the US Dollar and its impact on risk assets.

US NONFARM PAYROLLS COMES IN AT 187K vs 205K expected #NFP

Unemployment is 3.5% versus the expected the 3.6%. #btc should move high. Let’s see.#crypto #eth $Kas $ator $tara https://t.co/fzbaKeG2WL

— Influencer Stats (@Influencerstat) August 4, 2023

Currently, Bitcoin’s price is hovering around a six-week low, but its ability to maintain levels above $29,000 hints at a potential price recovery in August. Despite the NFP data missing the consensus estimates, the Unemployment Rate dropped to 3.5%, which indicates some positive developments in the economy.

Investors are closely monitoring the regulatory environment in the US, especially concerning the potential approval of a spot Bitcoin Exchange Traded Fund (ETF) by the US Securities and Exchange Commission. However, regulatory uncertainty and the crackdown on the cryptocurrency market have been contributing factors to Bitcoin’s struggle in resuming its upward trend.

Amid the ongoing DeFi crisis and intensified regulatory measures on crypto exchanges, the US economy added 187,000 Nonfarm Payrolls in July. The evolving macroeconomic landscape suggests a potential shift in favour of risk assets, but market sentiment remains contingent on the future developments surrounding the US Dollar and regulatory decisions.

The news of the US Nonfarm Payrolls data missing expectations can be seen as potentially positive for Bitcoin’s price. It may lead to a risk-on sentiment, where investors seek higher-yielding assets like Bitcoin. Additionally, a weaker US Dollar resulting from the data could drive demand for Bitcoin as a hedge against currency depreciation and inflation.

Key BTC Levels To Watch

Bitcoin (BTC) is currently undergoing a correction phase, with its price approaching the bullish trendline. The Stochastic Oscillator indicates a decline towards the oversold region, while the market fluctuates within a bearish channel. However, once the consolidation phase concludes, an upward movement is anticipated to surpass the previous month’s high of 31,818.0.

Bitcoin Key Levels

Supply Levels: 31,050.0, 32,000.0, 36,000.0
Demand Levels: 28,500.0, 25,300.0, 20,400.0

Total Market Capitalization: $1.2T
BTC Market Capitalization: $565.0B
BTC Volume: $11.3B
Market Rank: #1

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