US Employment Data Boosts Bitcoin to $71,000

By the evening of November 1, the leading cryptocurrency rebounded from lows near $69,000 to $71,100, marking a 3% increase. The primary price surge occurred following the release of US employment data.

At the time of writing, Bitcoin’s price had adjusted back to $70,000.

October’s non-farm employment figures were significantly below expectations: the economy added only 12,000 jobs compared to the anticipated 106,000. 

BREAKING: The US economy adds 12,000 jobs in October, BELOW expectations of 106,000.

The unemployment rate was 4.1%, in-line with expectations of 4.1%.

This marks the lowest number of US jobs added since July 2021.

All signs continue to point toward a weaker labor market.

— The Kobeissi Letter (@KobeissiLetter) November 1, 2024

“This is the lowest number of jobs added in the US since July 2021. All signs continue to point toward a weakening labor market,” wrote the economic resource The Kobeissi Letter.

The unemployment rate, on the other hand, matched the target figure of 4.1%.

Journalists expect that at the meeting on November 7, the Fed will reduce the base interest rate by 25 basis points. This assumption is supported by data from the FedWatch Tool.

Following the employment data release, the US Dollar Index (DXY) exhibited strong volatility, dropping to $103.6 before recovering to $104.1.

MN Trading founder Michaël van de Poppe is convinced that “a reversal is imminent as labor markets weaken.” 

There we go!

This week:
— Job Openings: The worst in 42 months.
— GDP: Lower than expected.
— Non-Farm Employment Change: Worst since January 2021.

The reversal is around the corner as labor markets are getting softer.

Next week: FED Meeting & Trump. pic.twitter.com/R59zevKDPI

— Michaël van de Poppe (@CryptoMichNL) November 1, 2024

Trader Skew emphasized the importance of today’s daily candle close. According to him, in an ideal scenario, a support level around $69,000 will form on the chart. 

$BTC 1D
Nice HH into very significant HTF resistance ($73K)

Ideally the market is setting the next 1D HL here with sustaining market demand around $69K

Another important 1D close later today, as well the November open is important for trend https://t.co/zByE4PKJ6o pic.twitter.com/xKNW2FIpkg

— Skew Δ (@52kskew) November 1, 2024

“The close of the October candle erased four months of downward price action in one stroke. Extremely optimistic. The [Ichimoku] cloud also shows bullish signs,” wrote trader Titan of Crypto.

Market participants in Bitcoin options have prepared for a “bullish” scenario following the US presidential election and the Fed meeting, increasing open interest in November calls with strike prices above $80,000.

A potential victory for Donald Trump could further strengthen the upward momentum of the leading cryptocurrency, analysts at JPMorgan noted.