Bitcoin (BTC) Price Prediction: Is the Selling Pressure Over?

Per the daily timeframe analysis, the BTC price was around the $96k range. Furthermore, the token stayed close to the 50-day EMA mark.

The price of Bitcoin (CRYPTO: BTC) didn’t react to much volatility on Tuesday amid the release of the latest U.S. Jobs data, and it continued to hover around the $96,000 level.

The jobs data indicated that fewer positions were added to the economy than expected in January. Economists had anticipated an addition of 170,000 jobs, but the actual figure fell short of this estimate, highlighting a slowing in labor demand.

While this news was positive for workers, it also complicated the decision-making process for the Federal Reserve regarding whether to cut interest rates at its next meeting. The Jobs Report is one of the key datasets that the Fed uses to inform its monetary policy decisions.

At press time, the price of Bitcoin was trading at $96,149, indicating a decline of over 1.15% in the past 24 hours. The world’s leading cryptocurrency had a market cap of $1.9 trillion.

Market Reacts Cautiously as U.S. Jobs Data Adds to Uncertainty

The Department of Labor reported on Monday that U.S. employers created 143,000 jobs in January, falling short of economists’ expectations and projections of 170,000.

Meanwhile, the unemployment rate declined from 4.1% to 4%, offering a mixed outlook for the economy.

The U.S. Jobs data impacted Bitcoin and other assets as such figures are used to determine the Federal Reserve’s crucial decision regarding interest rate policies.

A reduced hiring rate led to speculations about future rate cuts, which created a favorable market sentiment for Bitcoin. This occurred as other assets became more appealing than traditional financial instruments, such as bonds and savings accounts.

Hope for Fed Rate Cut Wanes as Market Shifts Expectations

The odds of the Federal Reserve cutting rates in the near term have diminished significantly. As of Monday, the CME Group’s FedWatch Tool showcased a 14.5% chance of a 0.25% rate cut at the Fed’s March meeting.

The market sentiment suggested that strong labor statistics would allow the Federal Reserve to keep rates higher, as the policy environment would discourage investment in volatile assets, including Bitcoin.

Despite the uncertainty regarding upcoming rate cuts, interest among market participants remained high, which was evident from the exchange reserve data.

A recent post on X by Ali Charts highlighted that over 70,000 $BTC had been withdrawn from exchanges in the past week, showcasing strong conviction for the long term.

Bitcoin Price Prediction: Is the Selling Pressure Over?

A technical analysis of the daily timeframe showed the BTC price hovering around the $96K price zone. Moreover, the token remained close to the 50-day EMA mark.

After a wild profit booking move of over 9% in the past week, the storm seemed to have faded. Moving forward, a fresh demand resurgence was observed.

At press time, the Bitcoin price stabilized gains above the 61.8% Fib support zone of $95K and witnessed accumulation.

Crypto Analyst Wolf stated that Bitcoin had more to go and still had room for an upsurge. The cycle top could be seen in the $130K-$180K range later this year.

This suggested that the BTC price was likely to continue its bullish rally and could be set for a range breakout soon. The immediate support zones were $93K and $88K, while the resistance zones were $102K and $110K.

The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of Webboh Technologies, Inc. or any of its affiliates. This article is for informational purposes only and should not be taken as financial advice. Consult with a licensed financial professional before making any financial decisions.