The U.S. Labor Department report came in hot today with an additional 256,000 jobs, far surpassing the expected 160,000.
The unemployment rate also fell to 4.1%, down from 4.2% in November. The news sent shockwaves through crypto markets, with Bitcoin (BTC) from $95,000 to $92,000 in an impulse move.
This greater-than-expected job data has also led traders to rethink their predictions on the Federal Reserve outcome. After the announcement, many traders now believe that the Fed will likely delay any interest rate cuts until later in the year, possibly until October.
This change in expectations is seen as negative for risk assets like Bitcoin. Treasury yields rose to their highest levels since November 2023, and the U.S. dollar strengthened, adding to the pressure on the crypto market.
Bitcoin May Drop to $80K: Experts Warn
This decline in Bitcoin, coupled with the NFP outcome, has got many, specifically analysts, to think that Bitcoin can drop down as low as $81 soon.
Titan of Crypto, a well-known crypto analyst, said the strong job numbers could signal rough times ahead for Bitcoin and the wider crypto market.
“A fractal from summer 2020 could be unfolding as the unemployment rate drops to 4.1% with 256,000 jobs added in December,” he said
He went even further by providing a detailed chart analysis that compared Bitcoin’s current price movements to a similar pattern from 2020.
The pattern is a rising wedge, considered a sign that Bitcoin may drop down after it reaches higher prices. Support levels from 2020 indicate there might be a further drop to approximately $75,000–$80,000.
Titan of Crypto’s second chart uses an Ichimoku Cloud indicator that noted the levels of $97,000 and $100,000 as very important for the short-term outlook of Bitcoin. Right now, the price is under the cloud which indicates a bearish condition. For Bitcoin to regain bullish momentum, it needs to break out above these levels. Failure of Bitcoin to recapture these resistance points would imply further downside action.
Another analyst, Rekt Capital, sees a possible positive signal for Bitcoin. “Bitcoin is showing signs of a Bullish Divergence at Range Low support of $91,000,” he said. This means that even though the price has gone down recently, Bitcoin might be set to recover in the next few weeks.
Looking ahead, traders are now awaiting more inflation data, which includes the Producer Price Index and the Consumer Price Index which are set for next week. These reports could affect what people think about the Fed and influence how Bitcoin and other risky assets move.
Also Read: If US Gov sells Bitcoin, its discount for us: Nayib Bukele
