Key Takeaways

• Bitcoin briefly hit $113,000 before falling back, following disappointing US employment data.

• Open interest has reached record highs with a $2 billion influx of Stablecoins.

• To confirm a solid market bottom, Bitcoin needs to sustain above $112,500 weekly.

This week, Bitcoin (BTC) increased by 4.75%, climbing from $109,250 to $113,384, bolstered by the anticipation of US non-farm payroll (NFP) data released Friday.

The results fell short of expectations, indicating only 22,000 new jobs were added, well below the 75,000 forecast and the 73,000 recorded in July. The unemployment rate, while meeting expectations at 4.3%, increased from July’s 4.2%, and wage growth also slowed, dipping from 3.9% to 3.7% year-on-year.

For assets like Bitcoin, weaker labor market data could support arguments for a Federal Reserve interest rate cut. Currently, there’s an 88.2% chance for a rate decrease, as this report reflects easing inflation pressures, which could lead to increased liquidity. Generally, lower rates and a weaker dollar favor the crypto market.

Recent on-chain data suggests that the market had anticipated these results, with inflows into exchanges surpassing $2 billion as traders positioned their liquidity. This is often seen as “dry powder,” ready to be deployed into BTC and ETH when opportunities arise.

Despite the Bitcoin price stabilizing around $110,000, the total open profit reached an all-time high of $80 billion. The combination of broader market forces and positive on-chain positioning sets the stage for volatility, although the overall trend remains upward. If sentiment shifts to risk-on mode, Bitcoin might be ready to establish a new upward trajectory.

Is Bitcoin at Its Bottom?

After the disappointing NFP data, Bitcoin initially gained but quickly reversed, losing 1.5% shortly after the New York market opened. This caused the price to dip below $111,000 after testing significant resistance levels between $112,500 and $113,650.

Such abrupt pullbacks can erase significant amounts, around $63 million in a few hours, often due to market makers taking advantage of traders’ positions before resetting the market direction.

The current hourly chart shows a generally positive structure. Even with this downturn, Bitcoin has consistently made higher lows, which are classic indicators of an upward trend. Unless Bitcoin closes below $109,500, the bullish framework in the short term might stay intact, making recent dips appear more like liquidity cleanses rather than trend reversals.

Looking at longer timeframes presents a more cautious perspective. It’s premature to declare a confirmed bottom, especially with the week still underway. A crucial level being held above $112,500 could strengthen the case for a base around $107,500.

Meanwhile, the broader market is still transitioning, caught between macro optimism and local supply constraints. Overall, the short-term outlook remains bullish, but lasting confirmations will hinge on weekly close patterns that balance against any resistance.

This article doesn’t offer investment advice and reminds readers that all trading decisions carry risks. Always do your own research.