Bitcoin (BTC) briefly pushed above $110,000 on Thursday before quickly reversing gains as robust U.S. jobs data sent shockwaves through financial markets. The data lowered the probability of a Federal Reserve interest rate cut in July, pressuring risk assets like crypto.
US Jobs Beat Expectations, Hurting Rate Cut Sentiment
The latest nonfarm payrolls report showed that the U.S. economy added 147,000 jobs in June, beating forecasts of 110,000. Moreover, the unemployment rate unexpectedly fell to 4.1%, down from the anticipated 4.3%.
This “hot” labor data prompted markets to slash expectations of a July Fed rate cut, with some analysts declaring it effectively off the table.
Revised May figures also came in higher than initially reported, further strengthening the case for the Fed to maintain its hawkish stance through the summer.
Bitcoin Price Action Faces Resistance and Volatility
After reaching an intraday high of $110,300, BTC/USD pulled back sharply during Wall Street’s opening hours. The drop was seen as a knee-jerk reaction to the stronger-than-expected jobs data.
Despite the retracement, key support levels held firm:
- $108,000 is acting as a critical support zone, with analysts suggesting it must hold to sustain any upward momentum.
- Short-term traders remain bullish, with upside targets set at $112,000 and $120,000 if support is maintained.
“As long as we stay above $108K, I’m aiming for $112K – maybe even $120K,” one analyst noted while reviewing order-book liquidity data.
Liquidity and Market Structure Remain Intact
Market data platforms show balanced liquidity clusters above and below BTC price, suggesting that Bitcoin is still well-positioned for volatile moves in either direction.
A resilient support base combined with broader macro uncertainty makes this a key moment for BTC traders.
Some analysts argue that the strong U.S. economy—while bearish for immediate rate cuts—could support long-term crypto growth by strengthening institutional interest.
Conclusion: Macro Headwinds Meet Technical Resilience
While hopes for a July rate cut have dimmed, Bitcoin’s macro narrative remains compelling. A strong labor market may delay Fed action, but it also reflects economic resilience — a condition that could ultimately bolster confidence in long-term digital asset adoption.
For now, $108K is the key level to watch. A break below could threaten momentum, while a bounce opens doors to $112K and beyond.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.