Bitcoin Price Tumbles After Strong US Labor Data
The Bitcoin price surged to almost $77,130 after the release of the US jobless claims data on September 17, but quickly reversed its gains and traded near $76,501. The initial jobless claims dropped by 10,000 in the week ending September 12, to 196,000, a figure that has not been seen since mid-July.
The stronger labor reading came one day after the Federal Reserve raised interest rates and signaled that inflation still requires tighter policy. The announcement was made at the policy meeting of the Federal Open Market Committee on September 16, where all twelve voting members agreed on the interest rate hike to 3.75%, 4.00%. The Bitcoin price's reversal can be attributed to financial conditions in general, with government bond yields becoming more attractive when monetary policy remains accommodative.
According to an analyst, Michael van de Poppe, $77,500 is the first significant resistance point for the Bitcoin price after it bounced off from $75,584. In addition, he highlighted a range between $80,500 and $81,200 as the second resistance point. A breakout above $77,500 would put the Bitcoin price on track to approach its 20-day moving average of $78,104.