Bitcoin (BTC) saw a fresh rejection at the $23,500 resistance on August 5 as US stocks failed to embrace surprisingly strong payroll data.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
‘Real wage collapse’ mocks payroll printing
Following data from Cointelegraph Markets Pro and TradingView BTC/USD as bears kept the market in its daily trading range.
Wall Street opened with a moan even though US July payrolls came in at weak estimates. The bizarre reaction has some analysts arguing that the numbers don’t actually show economic strength, but that existing workers are taking second jobs due to inflation.
Peter Schiff replied: “The increase of 528,000 jobs in July, as the labor force participation rate fell to 62.1, means that most of the new jobs went to people who already had jobs.”
The collapse in real wages forces many workers into the moonlight to pay the bills. If the job market was strong, one job would be enough.”
Schiff was far from alone in his doubts about the employment situation, with Weltheon CEO Adam Taggart, among others expressing distrust.
Meanwhile, Kyle Bass, chief investment officer at Hayman Capital Management, noted the Fed’s optimism about hiring in the years leading up to the 2008 global financial crisis.
Thus, both the S&P 500 and Nasdaq Composite opened slightly lower the day before entering the wave of relief, while Bitcoin recovered from a dip below $23,000 to redirect range tops at the time of writing.
“Short corrections are possible, but the trend is still up. Cointelegraph contributor Michael van de Poppe added that it looks very good in the higher time frames of bitcoin.
However, data from Binance’s command book has some concerns about whale activity. Notably, an entity was most likely trying to break out of its position altogether at current levels, warned Maartunn, a contributor to on-chain analytics platform CryptoQuant.
“Historically, the purple class of whales has had the greatest impact on the price of bitcoin,” he added.
Too many rejections?
Meanwhile, bitcoin traders have weighed the possibility of a new drop amid repeated rejections at $24,500.
Related: ‘Crazy Evidence’ Bitcoin Surrendered in the Past Two Months – Analysis
The popular Profit Blue trading account is eyeing $20,000 as the next major level of interest should the downtrend continue.
Fellow trader Dan continued, “$BTC has crossed lows and accumulated liquidity below $22.6K.”
“The closest downside liquidity is now along the high volume node below $21,000. However, the upside is very close to $23.6K-$24.7K. Seems a good trend for me.”
Daan also noted that the cryptocurrency has been “underperforming the rest of the markets this week,” but that could indeed change.
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