Bitcoin (BTC) has hit a new seven-week high after a series of unsuccessful attempts to break past the $21,000 level. The asset’s latest rally has been inspired by the October United States labor report that beat analysts’ estimates.
By press time, the flagship cryptocurrency was trading at $21,200, gaining almost 5% in the last 24 hours. Interestingly, before the job data, Bitcoin had shown signs of correcting below $20,000 following the sustained tightening onslaught from the Federal Reserve.
The breakout comes following Bitcoin’s sideways trading pattern, with the asset consolidating between $19,000 – $20,000. Despite the threats of sliding below $20,000, a section of analysts maintained bulls had a technical advantage over bears.
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Bitcoin’s bullish advantage
For instance, according to Kitco News analyst Jim Wyckoff, Bitcoin still has room for an upside breakout.
“Prices are in a sideways trading range on the daily chart. The direction in which prices “break out” of the trading range is likely to be the direction of the next significant trending price move. Bulls have the slight overall near-term technical advantage, which puts technical odds slightly in favor of an upside breakout from the trading range,” he said.
Notably, in October, the U.S. added 261,000 jobs beating analysts’ estimates of 205,000 jobs, while the unemployment rate hit 3.7%, missing the 3.5% target.
Implication of jobs data
Overall, the market was anticipating the job’s data since it informs the Federal Reserve’s possible direction in managing the skyrocketing inflation. Indeed, a challenging macroeconomic backdrop led by high inflation and rising interest rates has impacted Bitcoin and other risk assets with digital asset trading in tandem with stocks.
At the same time, Bitcoin price remains bullish, pivoting above $20,000, and if the new buying pressure is sustained, the asset might test new levels.
Furthermore, there is optimism among the crypto community that Bitcoin will stabilize above $21,000. As reported by Finbold, the CoinMarketCap crypto community predicted that Bitcoin would trade at an average price of $21,451 by the end of November 2022.
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