Bitcoin Nears Breakout as Market Heats Up
Bitcoin strengthened during Friday's trading (Aug 7) after US labor data came in significantly weaker than expected. Bitcoin rose approximately 0.8% to the US$64,955 range, marking a gain of over 3% for the week.
Positive sentiment emerged after July Nonfarm Payrolls showed a loss of 23,000 jobs, contrasting sharply with the expected gain of 85,000. Data for May and June were also revised downward by a total of 103,000 jobs, signaling that the US labor market is beginning to lose momentum.
The data caused the market to scale back expectations for a Federal Reserve interest rate hike in September. The probability of a 25-basis-point hike fell to around 42% from 55% the previous day. Lower interest rates generally serve as a positive factor for Bitcoin and other risk assets.
However, Bitcoin is still struggling to break through the US$65,000 level, remaining within the US$62,000–US$65,000 range. Uncertainty regarding the agreement to reopen the Strait of Hormuz also continues to limit investor appetite for risk assets.
Altcoin performance was mixed. Ethereum rose about 0.4% and gained 2.6% over the week, while Solana climbed more than 1%. Conversely, XRP weakened, posting a decline of nearly 4% for the week, whereas Cardano still recorded a weekly gain of over 18%.
Newsmaker Analysis: Weak NFP data acts as a positive catalyst for Bitcoin by reducing the threat of a Fed rate hike. However, the US$65,000 mark remains a key resistance level. A breakout above this level could open the door to US$67,000. Conversely, a failed breakout could see Bitcoin return to a consolidation phase in the US$63,000–US$62,000 range. (arl)
Source: Newsmaker.id
