Bitcoin fell to new local lows on the back of strong US jobs data, joining stocks and gold in what analysis called an “overdue” correction.
Market Update
Key points:
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Bitcoin falls with stocks and gold on stronger-than-expected US jobs data.
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The US dollar index reaches its highest levels in three weeks as jobless claims come in below expectations.
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$110,000 is an increasingly “likely” BTC price target next.
Bitcoin () looked “likely” to revisit $110,000 on Thursday as macro and geopolitical factors fueled BTC price weakness.
US jobless claims pressure risk assets across the board
Data from and confirmed new local lows of $110,658 on Bitstamp.
US jobless claims data came in below expectations on the day — a sign that labor market weakness may not be as acute as thought.
This caused markets to become less confident about Federal Reserve interest-rate cuts, per data from CME Group’s .
“And just like that, initial jobless claims are no longer a worry,” Ryan Detrick, chief market strategist at capital market company Carson Group, wrote in part of a .
US dollar strength surged as a result, with the US dollar index (DXY) hitting three-week highs while crypto, stocks and gold fell.
The mood was not helped by uncertainty over the Russia-Ukraine conflict amid reports of Russian jet interceptions over Alaska.
Commenting on risk-asset behavior, trading resource The Kobeissi Letter the stocks pullback “overdue.”
“Healthy bull markets do not move in a straight line,” it reasoned.
As , stocks and gold had previously been setting record highs.
$110,000 make-or-break for BTC price
On BTC price action, crypto market insight company Swissblock warned that the market “sits in a delicate balance.”
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“Bitcoin lost $113K and hovers under $112K: a retest of $110K looks imminent,” it X followers in part of a post.
Swissblock argued that BTC/USD needed to reclaim $115,200 to have a shot at revisiting the top of its range. Losing $110,000, on the other hand, would open up the path toward the $100,000 mark.
“$110K = max pain. Likely to be touched, leaving Friday’s options worthless,” it added, referring to the upcoming .
Bullish crypto takes focused on topside exchange order-book liquidity. With markets heavily short, a “squeeze” higher seemed all the more probable.
“Look at the overwhelming short-side dominance in potential liquidations,” trading resource TheKingfisher in part of commentary on proprietary data.
“$AVAX short-side is 96.2% of the pending liqs. $ETH at 78.3%. $BTC at 69.4%. This is how liquidations build up. Smart money knows this is magnet for price.”
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