September 6, 2023
Bitcoin reclaimed ground above the $110,000 mark this week, surging from under $108,000 to a peak near $113,000. Momentum stalled briefly after the release of softer-than-forecast United States payrolls data on Friday, but many traders see the downturn as a potential catalyst for a fresh rally.
Price Action and Recent Surge
Over the past seven days, Bitcoin has posted gains of more than 4%. The rebound began when buyers stepped in around $107,500, defending that key pivot level. As volume picked up, the market drove price toward resistance at $113,000, testing the upper boundary of the current trading range.
Short-term moving averages have crossed bullishly, and higher timeframes remain in an uptrend, suggesting that buyers are in control despite periodic pullbacks.
Impact of US Non-Farm Payroll Data
The latest US jobs report showed payrolls growth of just 150,000, well below the consensus estimate of 200,000. Unemployment remained steady at 3.7%, but the headline miss raised questions about the pace of economic recovery.
Markets interpreted the softer data as increasing the likelihood of a more dovish monetary policy stance. For risk assets like Bitcoin, this could translate into continued inflows as investors seek higher-return alternatives.
Technical Indicators Suggest Upside Potential
On the daily chart, the Relative Strength Index (RSI) is hovering near 60, leaving room for further upside before entering overbought territory. The Moving Average Convergence Divergence (MACD) histogram has turned positive, signaling growing bullish momentum.
Key support sits at the $108,000–$109,000 zone, while a decisive break above $113,000 could open the door toward $115,000 and beyond.
Traders Eye Fed Policy and Inflation
With consumer prices still elevated, investors are closely monitoring Federal Reserve communications. A softer labor market report may delay future rate hikes or even prompt discussions of rate cuts, boosting Bitcoin’s appeal as an inflation hedge.
In the event of renewed monetary easing, traders expect capital to flow back into digital assets, pushing prices higher.
Outlook for the Week Ahead
Looking ahead, Bitcoin must hold above $110,000 to maintain bullish conviction. Should the cryptocurrency regain momentum, the next upside targets lie at $113,500 and $115,000. Conversely, a close below $108,000 could trigger deeper consolidation around $105,000.
Overall, the combination of technical strength and dovish macro news sets the stage for a potential continuation of this week’s rally.