On Aug. 5, Bitcoin ( BTC), saw a new rejection at $23,500 resistance, as the United States failed to embrace surprisingly strong payroll data.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Payroll print: “Collapsing real salaries” is a joke
Data from Cointelegraph Markets Pro, TradingView. BTC/USD was followed by the bears who kept the market within its intraday trading range.
Wall Street opened with a whimper, despite the fact that U.S. payrolls for August were twice as high as expected. Some analysts suggested that the numbers didn’t show economic strength but instead showed existing workers taking up second jobs because of inflation.
“The July gain of 528K jobs, as the labor force participation rate dropped to 62.1, means most of the new jobs went people who already have jobs,” Peter Schiff replied.
“Collapsing real wage levels force many workers to work as a side hustle to make ends meet. One job would suffice if the labor market was strong.
Schiff wasn’t the only one to be concerned about the state employment. Wealthion CEO Adam Taggart was also skeptical.
This 6-sigma report on blowout jobs smells bad
2 quarters of GDP contracting, Fed busy hiking and corp margins contracting. Major companies freeze hires or actively lay off workers — these are not indicators of strong job creation
I’m calling BS
— Adam Taggart (@menlobear)
August 5, 2022
Kyle Bass, Hayman Capital Management’s chief investment officer, recalled that the Federal Reserve was optimistic about employment in the years before the 2008 Global Financial Crisis.
There will not be a housing crisis if there is a substantial amount of unemployment. It’s never left my memory. They were wrong. #recession #Jobs
Kyle Bass (@Jkylebass).
August 5, 2022
So, the S&P 500 Index and Nasdaq Composite Index opened slightly lower on the day before a relief rally entered. Bitcoin also recovered from a drop below $23,000 to retarget the range highs at the writing.
“Short corrections may be possible, but the trend is still up. It looks quite good on the longer timeframes of Bitcoin,” Michael van de Poppe , a Cointelegraph contributor, added.
However, some were concerned about whale activity based on data from Binance’s order book. One entity, Maartunn, a contributor of on-chain analytics platform CryptoQuant, was known to be trying to leave its current position.
A whale that wants to escape from the market.
These steps were taken by Purple ($100k-1M).
1. Support price is not supported by bids lower than the support price
2. Price up due to market buying
3. The price was pushed up to asks
4. Selling on the heavy market
5. Below-the-line bids are deletedData by @Mtrl_Scientist pic.twitter.com/XY8fezFHyd
— Maartunn (@JA_Maartun)
August 5, 2022
“Historically, the price of Bitcoin has been most affected by the purple whale class,” Material Indicators, a monitoring resource, said.
Too many rejections
Bitcoin traders considered the possibility of a new leg down amid repeated rejections at $24,500.
Similar: Insane Evidence’ Bitcoin has collapsed in the past 2 months — analysis
Profit Blue, a popular trading account, has set $20,000 as its next level of interest in the event that the downtrend continues.
#Bitcoin Perspective Update.
The double top pattern I warned you about at 24k is now very well.
There’s still plenty of downside potential. Let’s see how the 20k level holds up. pic.twitter.com/vyrV1rZCvO— PROFIT BLUE (@profit8lue).
August 5, 2022
“$BTC Took Out the Lows and Resting Liquidity That Was Build Up Below $22.6K,” Daan , a fellow trader, said.
“Nearest downside liquidity now sits all the way at high volume node under $21K. These levels are much closer to the upside at $23.6K-24.7K. It seems to me that this is a positive direction.”
$BTC and $ETH since the futures opened this week.
This week, crypto outperformed the rest of the markets. That’s for sure. We are working to close this gap. pic.twitter.com/6JzM7MSRFf
— Daan Crypto Trades (@DaanCrypto)
August 5, 2022
Daan also mentioned that crypto was “underperforming other markets this week”, but that this could be changing.
These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.
