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The capitalization of the cryptocurrency market returned to $ 1.2 trillion, after the fifth unsuccessful attempt to rise above the level of $ 1.3 trillion since the fall of the market in the first decade of May this year. The decline led to the formation of nine weekly negative candlesticks, a rare phenomenon of Bitcoin’s historical chart.
According to the technical canons of the market, such a protracted fall can lead to a significant positive correction, which was taken advantage of by the bulls, who managed to organize a daily growth of BTC + 8% at the beginning of the working five-day week.
The technical picture was “spoiled” by the fundamental indicators of the US labor market. Released on Wednesday, the indicator of the employment index ISM, with its negative value, indirectly predicted the problems of Friday’s statistics. Preparing in advance for the negative, American traders sold shares on Wednesday along with other risky assets, in particular, Bitcoin and altcoins.
Wednesday’s session almost completely offset Monday’s growth. The fall continued on Friday, when the NFP employment indicator was higher than forecast, but previous values of new jobs were revised for the worse.
In fact, the labor market in the United States has been declining for three months in a row. This was reflected in the unemployment rate. On Friday, its indicators were higher than forecast values, bringing down stock markets within 2% and above.
Bitcoin’s losses were comparable to the NASDAQ, which is unusual due to the greater volatility. Probably, the bulls are trying to prevent the formation of the 10th negative weekly candle in a row. Everything is decided by the current weekend, which traders left without good news. The combination of an increase in unemployment against the background of rising Fed rates is an ideal scenario for the crypto winter.
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