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Bitcoin and other altcoins remained under pressure on Wednesday after ADP released a stronger-than-expected private payrolls report.
Bitcoin (BTC) continued trading below $100,000, while major cryptocurrencies like Ethereum (ETH), Solana (SOL), and Binance Coin (BNB) were in a tight range.
ADP, the largest payroll processing company in the U.S., reported that the economy added 183,000 jobs in January, surpassing December’s 176,000 and exceeding the forecast of 148,000.
The ADP report comes just two days ahead of the Bureau of Labor Statistics’ official nonfarm payrolls report. According to Investing, economists expect the data to show that the U.S. economy created 154,000 jobs in January, down from 256,000 the previous month.
U.S. employment data is closely watched by cryptocurrency and stock market investors because it plays a key role in the Federal Reserve’s dual mandate—maintaining stable inflation and ensuring maximum employment.
A strong labor market suggests the Fed may keep interest rates higher for longer, as inflation remains above the 2% target. While the central bank has signaled two rate cuts this year, robust job growth could delay this timeline.
Bitcoin and other altcoins are also reacting to ongoing U.S.-China trade negotiations. The U.S. has already paused tariffs on Mexico and Canada, helping to halt Monday’s sell-off in the crypto industry.
Bitcoin price technicals points to more gains
Technicals point to a potential Bitcoin price surge, which will drive other altcoins higher. The weekly chart shows that Bitcoin formed a cup-and-handle pattern. It completed that formation in November and made a strong bullish breakout, reaching to a record high of $109,200.
Bitcoin is now forming a bullish flag chart pattern, comprising of a long vertical line and a rectangular consolidation. It has also remained slightly above the 50-day moving average and the ascending trendline that connects the lowest swings since October 2023.
If Bitcoin breaks above the upper boundary of the bullish flag pattern, it could trigger a strong rally, potentially pushing the price toward $120,000. Given Bitcoin’s influence on the broader crypto market, many altcoins would likely follow suit.
This article first appeared at crypto.news
