Bitcoin At Bottom: What happened? Jobless data from the US shakes markets

Takeaways from the conference:

• Bitcoin briefly surged up to $113,000 but then reversed after US payroll data that was weaker than anticipated.

• Stablecoin flows on Onchain show $2 billion and record interest.

• For a market to reach a permanent bottom, the weekly close must exceed $112,500.

BitcoinBTCIn the week ending Friday, the US Nonfarm Payrolls report (NFP), reveals that, up to 4.75%, is now at $113.384, up from $109 250.

Only 22,000 jobs were created in August compared with the forecast of 75,000, and to July’s print of 73,000. In line with predictions, the unemployment rate increased to 4.3%. However, it was higher than July’s 4.2%. Meanwhile, wage growth has slowed from 3.9% to 3.7%.

The weaker employment data for Bitcoin and other risk assets strengthens the argument for Federal Reserve rate reductions. Fed rate cut odds are at 88.2%, The report highlights cooling inflationary forces and increases likelihood of liquidation injections. Crypto markets are usually helped by lower interest rates and weakening dollar.

Onchain data signals suggest It was clear that this market anticipated the result a full day before. Stablecoin outflows to exchanges soared by over $2 billion as traders stored liquidity. 

Such activity is a reflection of history “dry powder” Once a catalyst is identified, we will be ready to switch into BTC or ETH. Bitcoin’s interest in the market has also risen above $80billion. It is now near its all-time highest, but despite price stabilization around $110,000.

Although the structure of the market remains positive, the combination between a easing in macroeconomic pressures and bullish positions onchain sets up the conditions for volatility. Bitcoin could be about to ignite a new leg up as sentiment is shifting from risk-off to liquidity and are primed for volatility.

Related: Rare Binance Bitcoin bottom signal fires: Will bulls or bears benefit?

Bitcoins at their lowest point?

Bitcoin began the day higher than expected, only to quickly revert, falling 1.5% in the New York morning session. BTC fell below $111,000 following the drop, having retested the important supply zone between 112,500 and 113650.

The sudden intraday drop-offs are often caused by early large liquidations. Over $63 million was erased within the last 4 hours. Also, market makers could have stopped hunting to take advantage of overcrowded positions before changing trend direction.

The structure is still positive on the chart for one hour. Bitcoin has continued to make higher highs and lower lows, which is a sign of an upward trend, even though it’s had a setback. BTC will remain bullish until it closes decisively below $109 500. The dip looks more like an influx of liquidity than a true trend change.

Zooming out the time frames at higher levels tells a cautionary story. Two days remain before the end of the trading week, so it’s too soon to confirm a bottom. It would strengthen the argument that a new base is near $107500 if a decisive closing above $112,500.

The broader market is still in transition, as it balances macro-driven positivity and local pressures. Shortly, lower-timeframes remain bullish. But confirmation of a lasting bottom depends on whether the weekly closing price remains above resistance.

Related: Bitcoin price ignores major US payrolls miss to erase $113.4K surge

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.