Bitcoin (BTC) price faces uncertainty as market trends and macroeconomic factors collide. Strong job growth in the US could prompt the Federal Reserve to cut interest rates. This would benefit Bitcoin by increasing liquidity.
However, recent exchange flows show a balance between outflows and inflows, signaling an uncertain price direction. BTC needs to break the resistance around $63,000 to move higher. However, if it falls below the $59,000 support, it risks falling to $55,000 or lower.
Could US Job Market Expansion Benefit Bitcoin?
Strong job growth and market optimism are a double-edged sword for Bitcoin. On the one hand, the positive economic outlook may reduce the urge for investors to turn to riskier assets like BTC. This is because traditional stocks can offer safer returns in a stable environment.
Additionally, the possibility of the Fed cutting interest rates less aggressively could strengthen the US dollar, potentially diminishing BTC’s appeal as an inflation hedge.
Read more: Bitcoin Price Prediction 2024/2025/2030
On the other hand, if the US economy continues to grow without overheating, this could boost overall investor confidence, encouraging more speculative investment, which could benefit BTC. Even so, the possibility of a slower pace of rate cuts could keep liquidity high, which tends to benefit riskier assets like Bitcoin.
In short, while a strong economy may limit some of Bitcoin’s appeal as a safe haven, it can still attract investors looking for growth opportunities in a positive market environment.
Bitcoin Equilibrium: Undecided Net Flows on Exchanges
Over the past month, net outflows from exchanges have dominated Bitcoin’s movement, but the trend is not as clear as it may initially seem.
On September 10, the largest outflow occurred, reaching a monthly low of -16,000 BTC. This is typically a strong bullish signal, as it indicates that holders are moving a significant amount of Bitcoin off exchanges, reducing the supply available for sale. However, after this large outflow, the pattern has been less decisive.
BTC Net Transfer Volume – Exchanges. Source: Glassnode
While negative flows have continued, indicating more outflows than inflows overall, they have not been as extreme, and we have also seen several days with positive flows. These inflows suggest that some investors are still sending BTC to exchanges, possibly to sell, which adds to the market uncertainty.
This back and forth between exits and entries reflects a market without a dominant trend. While there is still a preference for holding rather than selling, this is not enough to push Bitcoin’s price significantly higher.
With inflows and outflows balancing out more recently, BTC’s price trend remains undecided. Furthermore, the market could shift in either direction depending on how future inflows or outflows shape up.
BTC Price Prediction: A Possible 10% Jump Soon?
If the labor market continues to produce strong employment numbers, it could influence the Federal Reserve to cut interest rates further. A rate cut typically reduces borrowing costs and injects more liquidity into the economy. This could drive investors toward riskier assets like Bitcoin as they seek higher returns.
This scenario could positively impact the price of BTC by increasing demand, especially as lower interest rates make traditional investment avenues less attractive.
If Bitcoin can break through its key resistances around $63,000 and $64,700, it could trigger a rally towards $66,000 or higher as investors shift their focus to crypto.
BTC IOMAP. Fonte: IntoTheBlock
The In/Out of the Money Around Price (IOMAP) chart reveals significant support and resistance levels near the current price. The chart shows where BTC holders are either “in profit” or “out of loss.” However, if the BTC price fails to hold its current support of around $59,000, it risks a steeper decline.
A break below this level could trigger a more substantial pullback. In this case, BTC could potentially fall to $55,000 to $53,000, where the next significant support levels lie. This would likely encourage further selling pressure, especially from traders looking to cut their losses, pushing Bitcoin into a more bearish phase unless broader economic factors such as rate cuts help revive bullish momentum.
The article Bitcoin (BTC) Struggles With Mixed Signals appeared first on BeInCrypto Brasil.
