BTC price dips 1.8% as Bitcoin tackles ‘schizophenic’ new US jobs data

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Bitcoin (BTC) saw flash downside volatility into the June 7 Wall Street open as United States payrolls data surprised markets.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin wobbles on highly mixed U.S. jobs data

Data from Cointelegraph Markets Pro and TradingView showed a $1,300 BTC price dip within a single hourly candle before a rebound entered.

Bitcoin joined a knee-jerk reaction to U.S. nonfarm payrolls data, which vastly beat expectations to suggest that the labor market was coping with tight fiscal policy better than forecast.

This in turn pushed back the odds of the Federal Reserve lowering interest rates — a key prerequisite for a liquidity influx into risk assets and crypto.

“It does close the door on July rate cut,” economist Mohamed El-Erian responded, quoted by Bloomberg.

The Federal Open Market Committee (FOMC) was due to meet on June 12 to discuss rates, with markets now seeing little prospect of a cut resulting from the next three such meetings.

Per data from CME Group’s FedWatch Tool, the odds of a minimum 0.25% decrease stood at 0.6%, 8.8% and 50.8% for the June, July and September FOMC meetings, respectively, at the time of writing.

Fed target rate probabilities (screenshot). Source: CME Group

Other reactions noted the curious contrast between strong payrolls and unemployment, which at the same time rose to 4% — 0.1% above the predicted level.

“The US labor market looks completely schizophrenic,” commentator Holger Zschaepitz wrote in a post on X (formerly Twitter).

“While the Establishment survey by BLS reports 272k new jobs for May, the Household survey shows a large drop in the number of employed, down 408k jobs. This is why the US unemployment rate has risen from 3.9 to 4% despite a lower labor participation rate.”

U.S. labor market data. Source: Holger Zschaepitz/X

BTC price stays wedged in “tight area”

Turning to BTC price action itself, market participants chose to take a backseat while volatility resolved itself.

Related: Bitcoin hash ribbons flash the first buy signal since $25K BTC price

Popular trader Daan Crypto Trades noted that BTC/USD remained below key resistance, as before the data prints, while fellow trader Skew said that spot bidders were needed to fuel the uptrend.

“Tight area here generally with previous highs & resistance ($71.6K),” he added in one of various X posts.

Data from monitoring resource CoinGlass showed thickening liquidity both above and below spot price, with $72,600 now a focus for resistance — up from $71,900 earlier on the day.

BTC liquidation heatmap (screenshot). Source: C

“Still consolidating between the two major support & resistance levels at $67K & $72K,” Daan Crypto Trades concluded.

“The longer price consolidates below this resistance, the more likely it is to break in my opinion. We’ll just patiently wait :)”

BTC/USD chart. Source: Daan Crypto Trades/X

An accompanying chart showed recent higher highs, lower highs, lower lows and higher lows for BTC/USD, highlighting the overall sideways trading environment.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.