BTC along with US stock market saw a sharp decline in the trading hours on Friday. The extended plunge followed a weaker-than-expected August Jobs report released on Friday. As per the latest data, 1,42,000 jobs were created in the month of August, which is below from the analysts’ expectations of 160k. Also, the unemployment rate dropped slightly to 4.2% as per expectations.
Just after the data was released, aggressive bets on a 50 bps Fed interest rate cut surged above 50% and eclipsed odds of a 0.25% cut. After the report was released, BTC surged to $56.9k on the charts. However, this turned out to be a short-term bull trap and then BTC fall below $53k for the first time in last two months.
Although it’s worth noting that it further dropped and extended it to $52k, hitting a weekly bullish order block (OB) and support level that stopped the early August plunge. As per the analysts, if it holds this level, it could rebound in short term soon as the hype grows with the federal interest rate decision on Sep, 18th. But it's affects have to be seen in the long term run.
At the time of writing this article, BTC is trading nearly $54,600 and has seen a growth of 0.4% in the last 24 hours.