Just like that, BTC price action marks its highest levels since mid-September as U.S. unemployment data hints Fed rate hikes are working.
Bitcoin (BTC) passed $21,000 at the Nov. 4 Wall Street open as bulls tackled a formidable sell wall.
BTC/USD 1-day candle chart (Bitstamp). Source: TradingView
Sellers move aside for new multi-week highs
BTC/USD order book data (Binance). Source: Material Indicators/ Twitter
The day’s high marked Bitcoin’s best performance since Sep. 13, beating previous local peaks.
Material Indicators, which provided the order book charts, noted that above-expected United States unemployment figures may be aiding risk assets by increasing the chances of a Federal Reserve interest rate pivot.
“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,” it summarized.
“Note, that one month’s report doesn’t make a trend, but right or wrong, this market reacts to every data point.”
Zooming out, popular Twitter account Bitcoin Bull reiterated a characteristically positive take on BTC price action, arguing that cycle lows were near.
“This was just a pullback from a bigger bullish extension. The major peak is not in yet, but the bottom zone is here,” a tweet read.
“The cycle continues.”BTC/USD annotated chart. Source: Bitcoin Bull/ Twitter
$30,000 on the cards for November
Macro markets performed similarly strongly on the day.
An hour after the open, the S&P 500 was up nearly 2% and the Nasdaq Composite Index up 1.75%.
The U.S. dollar meanwhile lost ground, the U.S. dollar index (DXY) dropping to 111 support from 113 in a single day.
“$DXY is tanking. Yields are ready to drop. Bitcoin at $21K,” Michaël van de Poppe, founder and CEO of trading firm Eight, reacted.
“It’s time for the run towards $30k in coming weeks.”U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
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