Bitcoin price corrected in the form of a large bearish engulfing candle on the five-minute price chart, in response to the US Nonfarm Payrolls data release for April. The risk asset witnessed a knee-jerk reaction from market participants showing caution towards Bitcoin after the jobs report came in hotter than expected.

Bitcoin price has been hovering around the $29,247to-$41,273 bearish breaker’s lower limit for four weeks. With no directional bias and range tightening, things are starting to look boring for BTC traders.

Nevertheless, investors need to note that there is a good chance that Bitcoin price will continue heading higher until it tags the midpoint of the bearish breaker at $35,260. In a highly bullish case, a retest of the breaker’s upper limit at $41,273 is also possible.

With the Federal Reserve (Fed) latest 25 basis points hike, the financial landscape of the United States tightens even further. As more banks collapse, the trust in the Fed and the fiat currency will slowly start to erode. This development will push more people into hard assets like Gold, or even Bitcoin.

Traders witnessed a large bearish engulfing candle on the Bitcoin five-minute price chart, a knee jherking data. 

a large volume spike was noted on the BTC price chart as the asset nosedived. Bitcoin price is currently below its three key Exponential Moving Averages (EMAs) on the timeframe.

A better-than-expected addition of jobs to the US economy signals an increase in purchasing power, considered a catalyst for the US Dollar Index. This implies a decline in demand for risk assets among traders, driving their price lower.

Bitcoin bulls were eyeing a retest of the $30,000 level prior to the release of US NFP data. It remains to be seen whether traders can push the asset’s price higher, wiping out the losses from the US NFP release.

Bitcoin Sluggish on bullish sentiments above 2000$

May 07 2023