Bitcoin gets US employment boost as BTC price eyes $300M ask liquidity

Bitcoin (BTC) saw volatility around the Oct. 4 Wall Street open as United States employment data dramatically beat expectations.

Bitcoin joins US stocks in nonfarm payrolls gains

Data from Cointelegraph Markets Pro and TradingView showed BTC price action nearing $62,000 on Bitstamp.

Up by around 2% on the day, BTC/USD reacted well to the US nonfarm payrolls figures which came in significantly higher than predicted for September at 254,000 versus 147,000, respectively.

US equities also responded positively, with both the S&P 500 and Nasdaq Composite Index opening higher.

“The clear answer here is that risk appetite is incredibly strong,” trading resource The Kobeissi Letter wrote in part of various responses on X. 

“Markets are perceiving ALL news as good news for the first time in years.”

Kobeissi nonetheless cautioned that headline Consumer Price Index (CPI) inflation data, due Oct. 10, needed to support the risk-on narrative, guiding markets to believe that the Federal Reserve can achieve a “soft landing” on inflation.

In turn, markets began pricing in the overwhelming odds of the Fed’s next interest rate cut in November being smaller than the surprise 0.5% move last month.

“Following the report, odds of a 25 basis point interest rate cut in November skyrocketed to 93%. Before the report, markets saw a near 50% chance of a 50 basis point cut next month,” Kobeissi commented, referring to data from CME Group’s FedWatch Tool. 

“So how is this bullish if the so-called ‘Fed pivot’ has already been priced-in?”

BTC price spike attacks ask liquidity

Bitcoin itself cleared a line of ask liquidity at $61,830 during its reaction to the employment data, as shown by monitoring resource CoinGlass.

Related: Bitcoin analysis sees BTC price gains on Coinbase premium golden cross

Analyzing the situation on order books, popular trader Daan Crypto Trades suggested that BTC price may even attempt to take liquidity higher up, this totaling $300 million.

“Large cluster of sell orders places around the $62.5K price region. It will be interesting to see if price tries to fill those today,” he told X followers. 

Zooming out, fellow trader and analyst Rekt Capital meanwhile suggested that despite recent weakness, BTC price behavior was conducive to bullish continuation.

“Now that’s a picture-perfect retest right there,” he commented alongside the weekly chart showing BTC/USD respecting a downward-sloping channel.

“Bitcoin has successfully retested the Downtrend (light blue) as support.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.