Bitcoin fails to surpass $23.4K sellers, as US payrolls end inflation debate

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.

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.

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.

“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.

“$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.”

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 You should do your research before making any investment or trading decision.

Opinion writer on 7trade7