The Bitcoin price is regaining bullish momentum over today’s trading session, retracing the losses seen early in the week. Once again, the cryptocurrency is under the influence of macroeconomic forces working in its favor for the first time in months.
At the time of writing, the Bitcoin price trades at $21,000 with a 4% profit in the last 24 hours and seven days, respectively. Other cryptocurrencies in the crypto top 10 are displaying similar strength, with Binance Coin (BNB) and Dogecoin (DOGE) leading the altcoin rally.
BTC’s price trends to the upside on the daily chart. Source: BTCUSDT Tradingview
Bitcoin Price Barrels Through Resistance Levels
Data from Material Indicators show a spike in buying pressure from investors with orders of about $100,000. These Bitcoin whales are positively reacting to today’s U.S. economic data, which signals a slowdown in this country’s job market. An analyst at Material Indicator said:
Unemployment came in at 3.7% which is 0.2% higher than forecasted and BTC whales see it as a sign that FED rate hikes may be working. Note, that one month’s report doesn’t make a trend, but right or wrong, this market reacts to every data point.
As reported by NewsBTC, the U.S. Federal Reserve (Fed) is trying to mitigate inflation in the dollar. The financial institution is implementing a monetary tightening program by hiking interest rates and reducing its balance sheet.
For the first time in months, the Fed plans seem to be working, or at least, the data hints at this possibility. Ironically, adverse reports favor the Bitcoin price and risk-on assets in the current economic scenario. Another analyst said the following about the recent price action:
Unemployment is rising which is what the FED wants. Markets react positively to bad news which is good news. It’s sad that we are at the point where they want people to lose their jobs to fix inflation.
In addition to economic data, the U.S. dollar is trending to the downside and could re-test previous support after months in an upside trend. This downside price action is contributing to the Bitcoin price upside momentum.
The hourly $DXY chart shows a confirmed fakeout earlier in the session.
Still clinging to 111.80 for now, though. pic.twitter.com/ZSYvJocjHi
— Justin Bennett (@JustinBennettFX) November 4, 2022