On August 5, Bitcoin (BTC) faced resistance again at $23,500 as US equities failed to take in unexpectedly strong wage data.
‘Real Wage Crash’ pokes fun at payroll printouts
Data from Cryptooshala Markets Pro and trade view followed BTC/USD as the bears kept the market in their intraday trading range.
Wall Street opened with a whimper, even as US wage data for July came in at twice the estimated levels. The curious backlash has led some analysts to argue that the numbers don’t really show economic strength, but rather existing workers are taking second jobs due to inflation.
“A gain of 528,000 jobs in July, as the labor force participation rate fell to 62.1, means that most of the new jobs went to people who already had a job,” gold bug Peter Schiff. answered.
“Falling real wages are forcing many workers to work part-time to pay bills. If the labor market were strong, one job would be enough.”
Schiff was far from alone in his suspicions about the employment situation, with Wealthion CEO Adam Taggart among others expressing disbelief.
This 6-Sigma Breakthrough Jobs Report Smells Wrong
A 2-quarter contraction in GDP, an increase in Fed employment, shrinking corporate profits, large companies freeze hiring or actively lay off workers – all this in no way indicates strong job creation.
i call bs
— Adam Taggart (@menlobear) August 5, 2022
Kyle Bass, chief investment officer of Hayman Capital Management, meanwhile, recalled the Federal Reserve’s job optimism in the years leading up to the 2008 global financial crisis.
— Kyle Bass (@Jkylebass) August 5, 2022
As such, the S&P 500 and Nasdaq Composite opened moderately lower the day before the relief rally kicked off, while Bitcoin rebounded from falling below $23,000 and re-targeted to range highs at the time of writing.
“Short corrections are possible, but the trend is still up. Looks good on higher timeframes for Bitcoin,” Cryptooshala contributor Mikael van de Poppe. added.
However, data from the Binance order book has raised concerns about whale activity. Notably, one organization has likely tried to get out of its position altogether at current levels, warned Maartunn, a contributor to online analytics platform CryptoQuant.
Keith, who wants to leave, controlled the market.
Purple ($100,000–$1,000,000) made those moves
1. Rates lower to support the price
2. Market buying to increase the price
3. The price pushed to aka
4. Active sales in the market
5. Rates below are removed
— Maartun (@JA_Maartun) August 5, 2022
“Historically, the purple class of whales has had the most impact on the price of bitcoin,” added monitoring resource Material Indicators, which provided the numbers.
Too many rejections?
Meanwhile, Bitcoin traders weighed in on the possibility of a fresh move lower amid repeated rejections at $24,500.
‘Insane Evidence’ Bitcoin Capitulated Over Last 2 Months – Analysis
The popular Profit Blue trading account saw $20,000 as the next major level of interest if the downtrend played out.
#Bitcoin promising update.
The double top pattern I warned about at 24k works very well.
There is still some downside potential here, let’s find out how the 20k level holds up. pic.twitter.com/vyrV1rZCvO
— PROFIT BLUE (@profit8lue) August 5, 2022
“$BTC has broken through the lows and remaining liquidity that has accumulated below $22.6k,” fellow trader Daan. continuation.
“Immediate downward liquidity is now entirely at the high volume node below $21k. However, on the upside, these levels are much closer to $23.6K-$24.7K. I think it’s a good direction.”
Cryptocurrency is lagging behind the rest of the markets this week, that’s for sure. Although now I’m trying to close the gap. pic.twitter.com/6JzM7MSRFf
— Daan Crypto Trades (@DaanCrypto) August 5, 2022
Daan also noted that the cryptocurrency “has lagged behind the rest of the markets this week,” but that may already be changing.
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Credit : cointelegraph.com