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The three-day rally of Bitcoin was offset by yesterday’s “bear offensive”, which returned the cryptocurrency quotes below $ 30,000. This is the upper limit of the side channel in which BTC spent half of May.
Given the reason for yesterday’s fall of the main digital currency, analysts predict a high probability of continuing the downtrend with testing of the lows of the year at the end of the working week.
The Bitcoin rate fell synchronously on Wednesday with stock indices, after the release of US ISM indicators. The indicators calculated by the Institute of Supply Management have an important limit of 50 points, the readings below which indicate signs of a slowdown in the national economy.
In yesterday’s block of statistics below 50 points, unexpectedly for analysts, the employment index ISM fell. This is a leading indicator of Non Farm Payrolls (NFP) data showing the level of US manufacturing employment.
Negative NFP data caused many strong falls in stock indices in the history of trading. According to them, investors predict a tightening of the Fed’s monetary policy, the main factor of pressure on stocks and cryptocurrencies from November 2021.
NFP will be released this Friday and yesterday’s fall in stock indices and Bitcoin clearly shows that investors are betting in advance on failed statistics. The fall in stocks and cryptocurrencies will accelerate if the real data of American employment justifies their forecasts.
In this case, the lower limit of the Bitcoin flat will be broken, which will cause panic sales, which can only stop the update of the lows. If, by some miracle, the NFP turns out to be higher than forecasts, BTC will soar above the level of $ 32,000 in one day.
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