Think Again about the US Recession
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it erased gains from earlier today to focus on $23,000 support.
The pair reacted negatively to US unemployment data for January, which significantly beat expectations so that overall unemployment numbers fell to their lowest levels since 1969.
The Nonfarm Payrolls (NFP) data similarly outperformed, while average hourly earnings matched expectations for growth of 0.3%.
“Huge win in the NFP,” popular analytics account Tedtalksmacro responded on Twitter.
Going back to the forecast from the previous day, Tedtalksmacro saw a potential opportunity to increase bitcoin exposure, given the latest decline, which it said could take BTC/USD to $20,000.
“Probably an opportunity to re-upload this news,” another tweet added.
Bitcoin’s cold feet come from the suggestion that a stronger-than-expected labor market allows the Federal Reserve to maintain tighter monetary conditions and less liquidity for a longer period of time.
“The US economy is slipping into recession? Well, think again. At least not in the near term,” continued economist and analyst Jan Faustenfeld.
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US civilian unemployment rate chart. Source: Bureau of Labor Statistics
$25,000 Bitcoin Now ‘Crowd Trade’
As Cointelegraph reported, the Fed raised interest rates by 0.25% this week, in line with nearly all expectations, while Chairman Jerome Powell caused excitement by using the term “de-inflation” in the accompanying comments.
Related: Bitcoin bulls must reclaim these two levels as the “death cross” is still looming
The BTC/USD pair thus rose above $24,000 for the second time in as many days, and market participants are still hoping for a trip to $25,000 before a more significant bounce.
“BTC has made a clear break above the overall downtrend line + backtest,” investment research source Game of Trades stated.
“The next big resistance to note is the $25k area.”
Annotated BTC/USD chart. Source: Game of Trades / Twitter
However, popular Crypto trader Tony acknowledged that this goal may not be achieved.
“$25,000 is my main goal, but now I’m seeing a lot of people asking for it, and it’s becoming a busy business,” he wrote in part of a new update the day.
