Highlights
- US Nonfarm Payroll report expected at 175,000 in July, triggering concerns about Bitcoin's rally to $70,000.
- Bitcoin price reclaims $64,000 support/resistance after collecting resistance at $62,000.
- Holding below $66,000 resistance exposes BTC to the risk os
The United States Bureau of Labor Statistics (BLS) released the monthly Nonfarm Payroll (NFP) report on Friday. According to the data, the NFP increased by 114,000 in July, missing expectations of 175,000 and falling significantly behind June’s 260,000.
Bitcoin and altcoins like Ethereum, Solana, and Dogecoin struggled to find upward direction but were keen to lose ground. BTC’s price recovered above $64,000 before the NFP but corrected to trade at $63,300, while ETH strongly held onto support at $3,300.
Cryptocurrencies sustained losses this week amid rising geopolitical tensions in West Asia. Besides, investors did not buy the dovish stance fronted by the Federal Reserve on Wednesday, leaving interest rates at 5.25% – 5.5%.
NFP Explained: How Nonfarm Payroll Impacts Crypto Prices
The NFP report measures the change in the number of US jobs created or lost in a month. Released on the first Friday of each month at 8:30 AM EST, it’s a crucial economic indicator. Economists use this data to gauge the country’s economic health, directly reflecting growth, consumer spending, and total economic activity.
Higher NFP figures—above expectations are viewed as positive for the US dollar but pose immense risk for volatile assets like Bitcoin, stocks, and crypto. A stronger NFP will trigger a US dollar rally which means risk off and eventually a Bitcoin price crash.
Subsequently, Bitcoin will benefit should the Nonfarm Payroll report come out lower than expected, exerting pressure on the US dollar. This may culminate in a weaker currency, bolstered by several interest rate cuts before the end of 2024, which could significantly bump up the progress of risk assets. Consistent interest rate cuts would drive Bitcoin price as the US economy slows down.
The overall general expectation is that July’s Nonfarm Payroll data today will increase by 175k following a 206k jump in June and further clear the course for several interest rate cuts before the end of the year.
Bitcoin Price Bounces Back Targeting $70,000
Bitcoin price is back to trading above the 200-day Exponential Moving Average (EMA) in purple on the four-hour chart after bulls fiercely defended $62,000 support on Thursday. The Money Flow Index (MFI) has recovered to 29, indicating that despite falling to the oversold region, the BTC price could slowly regain momentum, targeting the psychological resistance at $70,000.
Traders will look for a daily close above $65,372—the previous day’s open and, subsequently, the 20-day EMA in blue—to validate the reforming trend reversal. A break above $66,000 support/resistance will reinforce the bullish grip as traders target two key levels at $68,000 and $70,000.
The validation of a rising wedge pattern, which formed as the price hit four higher lows and four higher highs, hints at a 13% drop to $58,000. This target is determined by measuring the distance between the first swing high and the first swing low.
If support at $64,000 fails, more traders will switch to BTC shorts. This will open the door for losses to $62,000—a dangerous maneuver that could, according to this BTC price forecast, drive the coin to $58,000 after the Nonfarm payroll data release.
Frequently Asked Questions (FAQs)
1. What is the US NFP?
2. How does rising NFP data impact Bitcoin price?
3. Will Bitcoin rise to $70,000 in August?
- Senate Banking Committee Releases Updated Draft Crypto Market Structure Bill
- Michael Saylor’s Strategy Fails To Make S&P 500 Listing, MSTR Stock Drops
- Solana Treasury Company SOL Strategies Gets Approval To List On Nasdaq
- Fidelity, Grayscale, VanEck Dump Ethereum Amid ETH Price Crash
- Ethereum Treasury Firm SharpLink Confirms Compliance Amid Nasdaq Oversight
- Chainlink Price Eyes $55 as Reserve Holdings Jump With 43,937 LINK Addition
- Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut
- ETH Price Forecast as Grayscale’s Covered Call Ethereum ETF Spurs Optimism — Is $8,500 in Sight?
- Bitcoin Price Prediction as SEC Unveils Agenda for Crypto Regulation — Is $200K Next?
- ONDO Price Prediction Amid Bitget Collaboration on Tokenized Stocks and ETFs: Is $2 Next?