In recent hours, Bitcoin’s price has struggled to meet buyer interest above the $35,000 mark, leading to a downward trend approaching the $34,000 low. This dip comes amidst growing concerns over a possible price correction, triggered in part by the rising unemployment rate. Nonetheless, Bitcoin maintains a robust position around its present level due to a 7-month high in volatility.
Bitcoin Shows A Positive Response To Higher Unemployment
The most recent employment statistics from the United States revealed a noticeable divergence from the anticipated figures, sending minor shockwaves through the crypto market.
Expectations had been set for the October unemployment rate to remain consistent at 3.8%, aligning with the data from August. Yet, the actual numbers rose slightly to 3.9%. Additionally, the non-farm payroll numbers, which were also expected to reflect the steady unemployment rate at 3.8%, fell short of predictions, with only 150,000 additional jobs being reported.
The combination of a higher unemployment rate and subdued payroll additions points to an unexpected deceleration in the momentum of the US job market, which can be bullish for Bitcoin. Amid these economic troubles and a pause in interest rates, Bitcoin showed a surprising uptick. Even with the economic signals not showing strong vitality, Bitcoin managed to rebound from $34.5K.
Interestingly, analytics from IntoTheBlock indicate a significant increase in Bitcoin’s volatility, with the measure rising over the past several weeks. This level of fluctuation was previously observed in April, a time during which the BTC price surged from $27,000, surpassing the crucial psychological milestone of $30,000.
Presently, with the volatility index sitting at around 41%, this increased market activity has the potential to attract additional traders and fresh capital. Yet, substantial sell-offs close to resistance points could trigger a downward trend in Bitcoin’s volatility.
What’s Next For BTC Price?
Bullish traders have been trying to hold Bitcoin’s price beyond the key resistance level at $35K, yet the extended wicks on the recent candlesticks suggest that bearish resistance is strong at higher prices. As of writing, BTC price trades at $34,555, surging over 0.5% in the last hour.
However, bulls are strongly defending a decline as the price recently rebounded from $34.5K. The stable EMA lines and Bitcoin’s attempt for a surge above EMA20 hold hopes for another surge. Should the price make a comeback from this level, the bulls may once again attempt to breach and hold the price above the $35K mark. Success here could pave the way for a climb to $36.7K, followed by a potential rise to $40K.
However, with the RSI trading below the midline, the sellers might gain an advantage. If the sellers gain the upper hand and manage to consistently keep the price below EMA20, it could signal their dominance and potentially lead to a further decline to test the $33K level.
Source: https://coinpedia.org/bitcoin/bitcoins-volatility-reaches-a-7-month-high-amid-rising-unemployment-does-btc-need-to-test-the-33k-level/