Bitcoin (BTC) saw another rejection at the $23,500 resistance level on August 5 as US equities failed to price in the surprisingly strong payrolls data.
‘Real wages fall’ mocks wage printing
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as declines kept the market within its intraday trading range.
Wall Street opened the session subdued and US employment figures for July came in twice as high as estimates. This strange reaction led some analysts to believe that the figures did not reflect economic dynamism, but that existing workers were taking second place due to inflation.
“A gain of 528,000 jobs in July means that as the labor force participation rate fell to 62.1, most of the new jobs went to people who already had jobs,” said answered gold digger Peter Schiff.
“The fall in real wages is forcing many workers to moonlight to pay the bills. If the labor market were strong, one job would be enough.”
Schiff was far from alone in his doubts about the employment situation, with Wealthion CEO Adam Taggart in particular expressing his mistrust.
This 6-sigma blow job report smells wrong
2 quarters of contracting GDP, busy subsistence roaming, contracting corporate margins, large companies actively cutting hires or laying off workers – these do not in any way indicate strong job creation
I’m calling BS
— Adam Taggart (@menlobear) August 5, 2022
This 6-digit job report doesn’t smell good. Two-quarters of GDP is contracting, the Fed is busy raising the inflation rate, corporate margins are shrinking, big companies are freezing hiring or actively laying off – this in no way indicates strong job creation. I call it BS — Adam Taggart (@menlobear) August 5, 2022.
Kyle Bass, chief investment officer at Hayman Capital Management, meanwhile recalled the Federal Reserve’s optimism about jobs in the years before the 2008 global financial crisis.
— Kyle Bass (@Jkylebass) August 5, 2022
There will be no housing crisis unless unemployment rises sharply. It never left my memory. Hell, they were wrong. #recession #jobs. — Kyle Bass (@Jkylebass) August 5, 2022.
So both the S&P 500 and the Nasdaq composite index opened slightly lower on the day before a relief rally began, while bitcoin recovered from a fall below $23,000 to refocus on the highs at the time of writing.
“Short corrections are possible, but the trend is still up. It looks good on the upper time scales for bitcoin,” said added Michaël van de Poppe, contributor to Cointelegraph.
However, data from Binance’s order book has some worried about whale activity. In particular, one entity tried to completely exit its position at the current levels, warned Maartunn, a participant of the CryptoQuant chain analysis platform.
A whale trying to get out was/is ruling the market.
Purple ($100k – $1M) made these steps
1. Offers below to support price
2. Market buying to drive price up
3. He managed to push the price up into issues
4. Heavy selling in the market
5. The offers below are deleted
— Maartunn (@JA_Maartun) August 5, 2022
A whale that wants to control / controls the market. The purples ($100,000 – $1 million) went through the following steps: 1. Bid below the support price. 2. Buy in the market to drive the price up. 3. The price has been posted in the questions. 4. Huge sale in the market. 5. Lower bids are destroyed. Details from @Mtrl_Scientist pic.twitter.com/XY8fezFHyd. — Maartunn (@JA_Maartun) August 5, 2022.
“Historically, the purple whale class has had the greatest impact on the price of bitcoin,” added resource monitoring resource Indicators, which provided the numbers.
Too many rejections?
Meanwhile, Bitcoin traders weighed the possibility of another leg down amid repeated rejections at $24,500.
Also Read: Bitcoin’s Capitalization Has Been Insane In The Last Two Months – Analysis
$20,000 in the popular Blue Profit trading account was seen as the next level of interest if the downturn continues.
#Bitcoin update outlook.
The double top pattern I warned about at 24k is playing very well.
There’s a lot more potential down here, let’s find out what the next 20k level will be like. pic.twitter.com/vyrV1rZCvO
— PROFIT BLUE (@profit8lue) August 5, 2022
#Bitcoin outlook updated. The double top pattern I talked about at 24k is doing very well. There is still plenty of downside potential here, let’s see how the next 20k level plays out. pic.twitter.com/vyrV1rZCvO. — PROFIT BLUE (@profit8lue) August 5, 2022.
“BTC pulled out lows and increasing rest liquidity below $22,600,” said for follow up Daan’s fellow trader.
“Liquidity is now closest to the downside at the high volume node under $21,000. However, the levels are much closer at the other side sitting at $23,600-$24,700. It seems like a good direction for me.”
Crypto underperforming the rest of the markets this week that’s for sure. Trying to close the gap now though. pic.twitter.com/6JzM7MSRFf
— Daan Crypto Trades (@DaanCrypto) August 5, 2022
BTC & ETH Since futures markets opened this week. Crypto didn’t gain the rest of the markets this week, that’s for sure. We are now trying to fill the gap. pic.twitter.com/6JzM7MSRFf — Daan Crypto Trades (@DaanCrypto) August 5, 2022.
Daan also noted that the crypto “underperformed the rest of the markets this week,” but that may already be changing.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. All investment and trading involves risk, you should do your own research before making a decision.