Just like that, BTC price action marks its highest levels since mid-September as U.S. unemployment data hints Fed rate hikes are working.
Bitcoin (BTC) passed $21,000 at the Nov. 4 Wall Street open as bulls tackled a formidable sell wall.
BTC/USD 1-day candle chart (Bitstamp). Source: TradingView
Sellers move aside for new multi-week highs
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD breaking through resistance to hit local highs of $21,262 on Bitstamp.
The pair had struggled to return to higher levels during the week, but the latest order book data from Binance showed asks now shifting up to north of $21,500.
BTC/USD order book data (Binance). Source: Material Indicators/Twitter
The day’s high marked Bitcoin’s best performance since Sept. 13, beating previous local peaks.
Material Indicators, which provided the order book charts, noted that above-expected United States unemployment figures may be aiding risk assets by increasing the chances of a Federal Reserve interest rate pivot.
“Unemployment came in at 3.7% which is 0.2% higher than forecasted and BTC whales see it as a sign that FED rate hikes may be working,” it summarized.
“Note, that one month’s report doesn’t make a trend, but right or wrong, this market reacts to every data point.”
Zooming out, popular Twitter account Bitcoin Bull reiterated a characteristically positive take on BTC price action, arguing that cycle lows were near.
“This was just a pullback from a bigger bullish extension. The major peak is not in yet, but the bottom zone is here,” a tweet read.
“The cycle continues.”BTC/USD annotated chart. Source: Bitcoin Bull/Twitter
$30,000 on the cards for November
Macro markets performed similarly strongly on the day.
Related: Analyst puts Bitcoin price at $30K next month with breakout due
An hour after the open, the S&P 500 was up nearly 2% and the Nasdaq Composite Index up 1.75%.
The U.S. dollar, meanwhile, lost ground, with the U.S. dollar index (DXY) dropping to 111 support from 113 in a single day.
“$DXY is tanking. Yields are ready to drop. Bitcoin at $21K,” Michaël van de Poppe, founder and CEO of trading firm Eight, reacted.
“It’s time for the run towards $30k in coming weeks.”U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
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