On Sunday, October 8, Bitcoin (BTC) is trading at $27.9 thousand, its price has increased by 2.6% since the end of the previous week. The specialist analyzed the market situation and assessed the prospects for the movement of the Bitcoin exchange rate over the next seven days.
This week, Bitcoin traded in the range of $27,160 - $28,600. On Monday, the price dropped to $27,631, but the decline was limited to this level. On Tuesday, the rate dropped to $27,160 as the dollar strengthened. On Wednesday, Bitcoin rose to $27,839 amid a weakening dollar and recovery in stock indices. On Thursday, the negative trend resumed, and BTC dropped to $27,351.

On Friday, October 6, Bitcoin rose in price by 1.90%, reaching $27,931. Markets showed increased volatility after the publication of a report on the labor market in the United States.

In September, the American labor market showed record growth. The number of jobs increased by 336 thousand, which is the highest figure in the last eight months, according to the US Department of Labor. An increase of 170 thousand places was expected. In addition, the revised figures for August were higher than the original ones: 227 thousand instead of 157 thousand new jobs.

The unemployment rate remained at 3.8% in September, repeating the highest since February 2022. Analysts had expected a decline to 3.7%.

Indices initially reacted negatively to the employment data, but then buying resumed, and as a result, the dollar index closed in the red. The report showed a slowdown in wage growth, possibly because most new jobs were created in low-wage industries.

Average hourly wages in the private sector increased by 0.2% month-on-month and 4.2% year-on-year. Experts' expectations were 0.3% and 4.3%, respectively.

The publication of positive data on the US labor market in September increased traders' expectations regarding a further increase in the base rate of the Federal Reserve System (FRS). The likelihood of a rate hike at the Oct. 31-Nov. 1 meeting is now estimated at 27.1%, up from 16.3% on Sept. 29, according to CME Group. In December, the probability of a rate hike is 36.7% versus 34.1% a week earlier.

There is a corrective movement in the dollar index, but until the price has overcome the 105.40 mark, buyers control the market. The technical picture for the growth of the SP500 index looks good, but investors' fears of a recession are having a negative impact, which is being transmitted to crypto investors.

The return of the BTC/USDt pair to the level of $28,295 opens up the possibility of retesting the resistance at $28,500. According to BitRiver, the bullish phase began on September 9 and will last until November 9. During this time, Bitcoin needs to return to the high of $31,804 reached on July 13.

The support zone is in the range of $27,145 - $27,200. The loss of this zone will lead to a decline in the rate to $26 thousand. This scenario is taken into account.