Bitcoin’s price surged toward $62,000 shortly after the U.S. government released its Nonfarm Payrolls report. The report, issued earlier today, indicated an unemployment rate for April of 3.9%, slightly above the anticipated 3.8%. This higher unemployment rate suggests that the Federal Reserve might lower interest rates, which typically boosts the appeal of riskier assets such as Bitcoin.
Bitcoin Recovers Following A Rocky Week
The April U.S. nonfarm payrolls data fell significantly short of expectations, highlighting the labor market’s weaknesses that the Federal Reserve indicated could support a case for cutting interest rates.
During a press conference on May 1, Fed Chair Jerome Powell stated, “We are prepared to maintain the current target range for the federal funds rate for as long as appropriate.” He added, “We are also prepared to respond to an unexpected weakening in the labor market.”
This disappointing nonfarm payroll report contrasts with other recent economic data, which had previously bolstered investor confidence.
Also read: Why Is the Crypto Market Up Today?
According to the most recent projections from the CME Group’s FedWatch Tool, the likelihood of a rate cut at the Federal Open Market Committee (FOMC) meeting in June is just under 15%. For the July meeting, the odds stand at 33% for a modest 0.25% reduction.
Bitcoin’s latest upswing was triggered by several factors including the Block’s latest announcement to purchase BTC. In its recent earnings report, Block disclosed its plan to allocate 10% of its gross profit from Bitcoin products toward monthly Bitcoin purchases. This might have strengthened the current buying momentum.
Leading analysts previously advised to keep an eye on the $62k level to see if Bitcoin could reclaim it. Ki Young Ju, founder of on-chain analytics firm CryptoQuant, mentioned that the area below $60,000 had been popular for “buying the dip.” He commented alongside a chart of active whale addresses that Bitcoin whales had accumulated 47K $BTC in the past 24 hours.
What’s Next For BTC Price?
Bitcoin price has been on a recovery rally after buyers strongly defended the $56K support line. In the last few hours, BTC price triggered intense buying pressure and broke above the $60K level. However, it faced slight downward pressure around $62K. As of writing, BTC price trades at $61,783, surging over 4.6% in the last 24 hours.
BTC price is currently attempting to surge above its 200-day EMA trend line, signaling the dominance of bulls over bears. Despite buyers’ efforts to reclaim ground above $65,000, bears may have different intentions. A retreat from this level would indicate a bearish resistance shift, potentially leading to a decline towards the 61.8% Fibonacci retracement level at $60K.
However, this bearish outlook could shift if the price successfully holds above $65K, initiating a rally toward $67K. As the RSI level now holds above the midline, the buying demand may continue to increase in the coming hours.
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