Bitcoin falls after job openings rise

A strong labor market slows down the expected Bitcoin rally

The price of Bitcoin fell by 5.17% on Tuesday, trading at USD 96,954.61, after the figures for job openings (JOLTS) in the United States were released, which exceeded market expectations. This unexpected increase in labor supply generated a significant impact on the cryptocurrency market.

Bitcoin closed below $99,500, a key fixed resistance level. / TradingView

The summary of the labor data

According to the latest report, job openings in the US increased by 259,000, reaching a total of 8.098 million in November 202. This exceeded projections of 7.70 million. This increase was mainly observed in sectors such as professional and business services, finance and insurance, while the information sector experienced a decrease of 89,000 vacancies.

The resilience of the labor market strengthened the dollar, which recovered from earlier losses, hurting the price of bitcoin and other cryptocurrencies. This is reflected in the fact that 95.2% of money market participants are betting on the stability of the Federal Reserve's interest rates at its next meeting on January 29.

The increase in job vacancies in the United States weakened bitcoin, as the chances of the FED making another rate cut are reduced.

Impact on the cryptocurrency market

The fall of bitcoin has been drastic, resulting in almost USD 100 million in liquidations in the futures market, where 88.02% of the positions were long. Bitcoin bulls were the most affected by this collapse, which closed the day with a clear red candle, suggesting possible further setbacks.

Despite this fall, interest and confidence in bitcoin continue. The cryptocurrency continues to be withdrawn from centralized exchanges to self-custody wallets, with the balance having dropped to 2.18 million BTC held by the exchanges. This indicates that many investors still hold expectations for higher prices in the future.

Technical analysis

Bitcoin closed below $99,500, a key level of fixed resistance. However, it is still holding above the EMA50 and EMA200, suggesting that the bullish sentiment has not completely faded. Currently, the price is facing dynamic support at the EMA50, located at $94,416. Investors will be keeping an eye on the non-farm payrolls report due out next Friday, which could influence market behavior.

The rise in job openings proved to be a weakening factor for bitcoin and other cryptocurrencies at a time when many were expecting a rally to new all-time highs. The combination of a strong labor market and a strengthening dollar could continue to affect the price of bitcoin in the near term.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies involves risks, and thorough research is recommended before making investment decisions.