Bitcoin saw a surge in its price, reaching a week-to-date high near $60,000, due to a less than expected US jobs data release. The digital asset spiked above $58,000 as the Wall Street markets opened on August 8th, following the release of US unemployment figures.
According to data from TradingView, Bitcoin hit local high prices of $59,800 on Bitstamp — the peak value of the week. Interestingly, this spike ran parallel to US jobless claims reporting at 233,000, lower than anticipated, prompting a shift from recent talks of recession to a more optimistic economic outlook.
Economist Mohamed El-Erian viewed the lower-than-expected jobless claims as indicative of a careful, methodical return to normal, as opposed to a rapid deterioration. Data from CoinGlass also detailed how the latest jobs data instigated an aggressive buy trend, though resistance has yet to recuperate fully.
Material Indicators noted a substantial reaction from traders on Binance, the world’s leading cryptocurrency exchange, with Bitcoin buy orders worth $30 million lodged in response to the jobs data. Despite the positive momentum, traders remain careful given the recent volatility in Bitcoin prices.
The crypto trader, Roman, proposed that the Bitcoin to USD exchange rate might reach around $60,000 before reversing to the lower end of its weekly range. He pointed out that the current price action looks bearish as well, with a decrease in volume alongside an increase in price, hinting at a potential downturn once resistance is hit.
Crypto analysts also highlighted that significant liquidity needed to buffer a downward turn is now low, observing that any remaining liquidity below the current level has been consumed, dipping right down to below $50K according to CoinGlass figures. The analysts predicted that a more prominent liquidity cluster could form as the market starts to stabilize.