Bitcoin Corrects Below $80,000 as Gold Tests Support at $4,400
Bitcoin (BTC) has fallen back below $80,000 after an earlier rejection near $81,500. The largest cryptocurrency by market capitalization is aiming for short-term support at $79,000, which could encourage dip buying.
The United States Services PMI improved to 55.4 in August from 54.1 in July, leading to a surge in Gold (XAU/USD) to $4,511 on Thursday.
However, the price of Gold has since corrected and is testing support at $4,400 as investors reprice their expectations after the latest Nonfarm Payrolls report.
The August NFP data showed a significant acceleration in job growth, with 162K new jobs added, beating consensus forecasts of 56K. This unexpected labor market resilience led to a 60% probability that the Federal Reserve will raise interest rates to the 3.75%-4.00% range from 49% a day earlier.
Bitcoin's price action is driven by how well its Exponential Moving Averages (EMAs) absorb corrective dips, with initial support seen at $72,553 and secondary dynamic support at $71,071. Gold holds above its EMAs but momentum has cooled, suggesting upside attempts could be labored rather than impulsive.