April 17, 2024

Can Bitcoin Hold the $18,600 Line Amid Market Selloff?

Bitcoin is not breaking beyond or beneath its present range and the price action is not fully decided. The token witnessed upside volatility during the trading session on Wednesday, but gains came back on Thursday as Bitcoin was taken over by forces in the macroeconomic sphere.

BTC on the Edge

Bitcoin trades at $19,200 as of the time of this report but there were movements to the side within the last 24 hours and it made up to a 4% gain over the past week. Some large crypto assets were able to preserve their profits from last week, most others have been flowing according to the market trends. 

While Bitcoin moved into its next level of resistance at close to $20,500, the US released its latest jobs report. The initial jobless claims for this month were reported at 193,000, the least figure since April 2022. It amounts to a 16,000 drop from what was recorded the week before when they were reported at 215,000.

The latest report shows that the American economy has been seeing an increase in its workforce as a lesser number of people report unemployment. The jobless claims equally saw a drop of about 29,000 for 1.3 million. These reports have relevance since the US Feds are fixed on halting inflation in its tracks as calculated by the consumer price index.

Report on Indicators

The consumer price index is presently at a high of many decades which compelled the Feds to raise interest rates. Nevertheless, the Federal Reserve’s monetary policy seems to have a high effect on the economic growth of the US.

The jobs reports said the strong employment figure comes while the Fed is trying to calm the economy and reduce inflation, which is rising to its highest points since the 1980s. officials of the central bank have mentioned the labor market and the pressure it exerts on salaries as a goal of its monetary policy.

Due to this report, the financial market and Bitcoin traded downward. Market players are pricing in more interest rate increases and more hawkish measures from the Federal Reserve as it tries to control inflation.

While the report was released, the President of the Cleveland Feds, Lorretta Mester, said the central bank must do what it must to get the price stability back. Other top officials have the same position. It might translate into further pain for BTC and other risk-on commodities.

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