Bitcoin (BTC) is still attempting to hold the $20,000 level, with macroeconomic elements continuing to be unfavorable to the flagship cryptocurrency. After briefly dropping to $19,000, the asset is looking at a possible rally, banking on factors such as the US nonfarm payrolls report released on September 2.
Although the $20,000 position has appeared threatened, the level, which is a critical psychological level, continues to hold firmly. In this line, the market is exploring possible scenarios that would trigger an upward trajectory for the asset.
Therefore, according to Kitco News analyst Rajan Dhall, $25,066 is one of the notable crucial levels to look out for, as it will signal a possibility of recovering while offering an avenue to exit the extended bear market. Any hope of hitting this level means that Bitcoin should first target $21,760 and count on the bulls to sustain the position.
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On the flip side, if bears remain strong, Bitcoin is facing the possibility of consolidating to a low of $17,567.
Bitcoin records minor gains amid positive job report
It is worth mentioning that Bitcoin has, however, made slight gains in the wake of the US job report. Notably, 315,000 were added in August, slightly higher than expected amid rising interest rates and sluggish economic growth.
In this line, Bitcoin was trading at $20,300 by press time, gaining almost 2% in the last 24 hours. The minor gains were also instrumental in pushing the crypto market capitalization to near the $1 trillion mark. By press time, the global crypto market capitalization stood at $999.3 billion, gaining by $14.11 billion within an hour of the US job report.
Bitcoin under threat from Fed’s next action
Furthermore, with Bitcoin reeling from the macroeconomic factors, there is anticipation that the job’s report will likely push the Federal Reserve to implement more aggressive measures like raising interest rates to tame the skyrocketing inflation.
Consequently, analysts had projected that a positive job report might plunge Bitcoin to around $15,000. The scenario could jeopardize the $20,000 position since the asset has recently been tied to macro sentiment.
Overall, if Bitcoin manages to hold $20,000, it would likely drive the belief among investors that the crypto market might have found a bottom.
Amid anticipation regarding the next Bitcoin course, the ‘HODL’ mode appears to have been activated, as highlighted by Finbold’s report on September 1. In this case, 62% of Bitcoin holders had not sold the asset for over a year despite the prevailing depressed market conditions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
