BTC/USD exchange rate stays supported over the 20-day and 200-day EMA
The top cryptocurrency’s price spike comes amidst an optimistic US jobs outlook for July
JAIPUR (Coinchapter.com) – Bitcoin moved north of $41,000 Friday as investors waited for July’s US jobs report.
A Dow Jones poll noted that economists expect the US economy to add about 845,000 jobs in July. But predictions are all over the place due to the Covid-19’s delta variant playing spoilsport. The gamut of forecasts ranges from 350,000 to 1.2 million. Wilmington Trust economists have chosen to put their money on the former number, with Jefferies economists rooting for the latter. And both have their reasons.
Lower predictions are due to slower growth in high-frequency data, opines Wilmington Trust chief economist Luke Tilley.
“We think the run rate right now is about 500,000. Last month seems a little bit overcooked,”
Even if the July jobs report does come in strong, the delta variant factor will be largely absent from the calculations.
“Whatever the number is, it’s going to be heavily caveated by the fact that during the survey week, the delta variant concerns weren’t as pronounced as they are right now or as they will be during the August survey period,”
noted BMO fixed income strategist Ben Jeffery.
That, in turn, adds a whole new dose of uncertainty in labor market growth, even with unemployment rates expected to dip below 5.9%.
Despite more robust predictions, weak sentiment for the July jobs report dashed the Fed’s plans to taper its monthly $120 billion bond purchase. Risk-on assets like stocks and Bitcoin inched up higher as a result.
The BTC/USD exchange rate, in particular, notched up 10% from the $37,222 low recorded in Thursday’s noon session to $41,484.
As usual, profit-takers sold the top. The area above $40,700 served as a cue to traders to secure their short-term profits. But bulls still managed to keep the top cryptocurrency hovering over $40,000.
Bitcoin appears to be holding firm above the 20-day, 200-day, and 21-week exponential moving average (EMA) waves. According to analysts, this is a bullish indication.
“#BTC is now in the process of retesting its 21-Week EMA as support. The 21-week EMA is a time-tested Bull Market indicator.”
said Twitter-based crypto trader and analyst, Rekt Capital.
However, bulls would need to reclaim $42,500 as support for a run towards $48,000-50,000. Otherwise, the risks of falling towards $35,000, or the 200-day simple moving average (200-day SMA) wave would remain intact.
BTC/USD needs to close above $42,500 for the next leg of bullish advance. Source: BTCUSD on TradingView.com
Bullish Fundamentals
On the fundamental front, Bitcoin comes out as bullish.
According to Glassnode, the number of new Bitcoin addresses is still far below the count during the fall from the 2017 high of $20,000. Moreover, data from the on-chain metrics provider shows that new address growth remained lower even during the rally to $65,000 earlier in April this year.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
Bitcoin (BTC) started the new weekly session in red, dropping by over 6% to below $32,000, its worst level...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.