Bitcoin price taps week-to-date high near $58.5K amid US jobs data miss
2024.08.08 10:00
Bitcoin (BTC) spiked through $58,000 into the Aug. 8 Wall Street open as United States unemployment data boosted the mood.
BTC/USD 1-hour chart. Source: TradingView
Low jobless claims “good news” for Bitcoin
Data from Cointelegraph Markets Pro and TradingView showed local BTC price highs of $58,482 on Bitstamp — the best performance week-to-date.
US initial jobless claims came in at 233,000, below expectations, feeding a positive narrative over the economy where previously talk of recession abounded.
“Despite being an inherently noisy high-frequency data release, today’s US jobless claims will attract a lot of attention,” economist Mohamed El-Erian wrote in part of an X post in advance of the release.
El-Erian suggested that a print below 230,000 “would point to gradual and orderly normalization rather than something worse.”
BTC liquidation heatmap (screenshot). Source: CoinGlass
The latest data from monitoring resource CoinGlass captured an assault on overhead ask liquidity as a result of the jobs claims, with resistance yet to be replenished at the time of writing.
Trading resource Material Indicators added that traders on largest global exchange Binance had responded by placing BTC buy orders worth $30 million.
BTC/USDT order book data for Binance. Source: Material Indicators/X
Responding, however, traders continued to err on the side of caution given the extent of recent BTC price downside.
Popular trader Roman suggested that BTC/USD would reach a maximum of $60,000 before returning to the lower end of its weekly range — a theory already gaining traction on social media.
“So far so good. Still expecting a 60k retest then a dump back to lows before we attempt to get a potential reversal,” he told X followers.
“Price action proving bearish as well (volume down + price up) so I’m expecting a down once we hit resistance.”
Draining liquidity below
Zooming out, meanwhile, fellow trader Daan Crypto Trades noted that little significant liquidity remained to the downside.
Related: Bitcoin speculators sit on 93% unrealized losses after $365M ‘wipeout’
“Has taken out whatever liquidity was left below, all the way down to sub $50K,” he summarized about the CoinGlass data.
“The $70K-$72K Region has been one to watch for the entire year. We’re pretty far off from any big liquidity cluster right now but we’ll form them as we start consolidating here.”
BTC/USDT liquidation heatmap. Source: Daan Crypto Trades/X
Price thus partly filled a nearby gap in CME Group’s Bitcoin futures market, which Cointelegraph reported on the day prior.
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