Bitcoin (BTC) saw a fresh rejection at $23,500 resistance on Aug. 5, as US stocks failed to follow the surprising payroll data.
“Real Wages Collapse” Mocks Payroll Printing
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as the bears kept the market in their intraday trading range.
Wall Street opened with a sigh despite US payrolls for July coming in at double estimated levels. The curious reaction caused some analysts to argue that the figures did not, in fact, show economic strength, but rather that existing workers were taking on second jobs due to inflation.
“The gain of 528,000 jobs in July, while the labor force participation rate fell to 62.1, means that most of the new jobs went to people who already had jobs,” answered gold expert Peter Schiff.
“The collapse of real wages forces many workers to work under the table to pay the bills. If the labor market were strong, a single job would be enough.”
Schiff wasn’t the only one who was suspicious of the employment situation, as Wealthion CEO Adam Taggart was among those who expressed mistrust.
This 6-sigma blowout jobs report smells wrong
2 quarters of contracting GDP, Fed busy hiking, corp margins contracting, major companies freezing hires or actively laying off workers — these in no way indicate strong job creation
I’m calling BS
— Adam Taggart (@menlobear) August 5, 2022
This 6-figure employment report smells bad
2 quarters of GDP contraction, the Fed busy raising prices, company margins shrinking, big business freezing hiring or actively laying off workers – this by no means indicates strong job creation
I’m calling BS
For his part, Kyle Bass, chief investment officer at Hayman Capital Management, recalled the Federal Reserve’s optimism about employment in the years leading up to the 2008 global financial crisis.
— Kyle Bass (@Jkylebass) August 5, 2022
Be a housing crisis unless we have a major outbreak of unemployment. I have never forgotten. They were wrong.
Thus, the S&P 500 and the Nasdaq Composite Index opened slightly lower before a relief rally set in, while Bitcoin recovered from a drop below $23,000 to return to range highs in the time of writing this report.
“Short corrections are possible but the trend is still up. Looking pretty good on higher time frames for Bitcoin”, added Michaël van de Poppe, Cointelegraph contributor.
However, Binance order sheet data has caused some to worry about whale activity. In particular, an entity is likely to attempt to exit its position entirely at current levels, warned Maartunn, a contributor to on-chain analytics platform CryptoQuant.
A whale who wants to get out was/is controlling the market.
Purple ($100k – $1M) made these steps
1. Bid below to support price
2. Market buying to drive price up
3. Price got pushed up into asks
4. Heavy market selling
5. Bids below are erased
— Maartunn (@JA_Maartun) August 5, 2022
“Historically, the blue class of whales has been the biggest influencer on Bitcoin price,” added monitoring resource Material Indicators, which provided the figures.
Too many rejections?
Meanwhile, Bitcoin traders weighed the possibility of a further leg down amid repeated rejections to the $24,500 level.
The popular Profit Blue trading account viewed $20,000 as the next level of interest should the downtrend continue.
#bitcoin perspective update.
The double top pattern that I warned about at 24k is playing out very nicely.
There is still a lot more downside potential here, let’s find out how the 20k level holds next. pic.twitter.com/vyrV1rZCvO
— PROFIT BLUE (@profit8lue) August 5, 2022
“$BTC cleared lows and idle liquidity that accumulated below $22.6K,” said the trader Daan.
“The closest liquidity to the downside is now at the high volume node below $21,000. However, the upside has these levels much closer sitting at $23.6K-$24.7K. Seems like a favorable direction to me.” .
Crypto underperforming the rest of the markets this week that’s for certain. Trying to close the gap now though. pic.twitter.com/6JzM7MSRFf
— Daan Crypto Trades (@DaanCrypto) August 5, 2022
$BTC and $ETH since futures open this week.
Cryptocurrencies have underperformed the rest of the markets this week, that’s for sure. However, we are trying to close the gap.
Daan also noted that cryptocurrencies were “underperforming the rest of the markets this week” but that this could already be changing.
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