October 2, 2022

Bitcoin (BTC) saw a fresh rejection of $23,500 resistance on August 5 as US stocks failed to embrace surprisingly strong payrolls data.

BTC/USD 1 hour candlestick chart (Bitstamp). Source: TradingView

“Real Salaries Collapse” have fun with payroll printing

Data from Cointelegraph Markets Pro and TradingView BTC/USD followed as bears kept the market in its intraday trading range.

Wall Street opened with a whimper, despite US payrolls for July coming in at twice estimates. The odd reaction led some analysts to argue that the numbers didn’t actually show economic strength, but rather existing workers taking on second jobs due to inflation.

“July’s gain of 528,000 jobs as the labor force participation rate fell to 62.1 means most of the new jobs went to people who already had jobs,” said Peter Schiff. he responded.

“The collapse in real wages is forcing many workers to moonlight to pay the bills. If the labor market was strong, one job would be enough.”

Schiff was not alone in his misgivings about the employment situation, with Wealthion CEO Adam Taggart among others expressing disbelief.

Kyle Bass, chief investment officer at Hayman Capital Management, meanwhile recalled the Federal Reserve’s optimism about employment in the years before the 2008 Global Financial Crisis.

Thus, the S&P 500 and Nasdaq Composite Index opened the day mildly lower before starting a relief rally, while Bitcoin rebounded from a dip below $23,000 to retarget higher ranges at the time of writing.

“Short corrections are possible, but the trend is still up. I am looking very good on the higher time frames for Bitcoin”, Cointelegraph contributor Michaël van de Poppe added.

However, data from Binance’s order book raised concerns about whale activity. In particular, one entity was likely trying to exit its position at current levels, warned Maartunn, a partner of the analytics platform at CryptoQuant chain.

“Historically, the purple class of whales has had the most influence on Bitcoin’s price,” added tracking resource Material Indicators, which provided the data.

Too many rejections?

Meanwhile, Bitcoin traders weighed the possibility of a new leg amid repeated rejections at $24,500.

Related: ‘Crazy Figures’ Bitcoin Has Capitulated Over The Last 2 Months — Analysis

Popular trading account Profit Blue has identified $20,000 as the next major level of interest should the downtrend continue.

“$BTC Takes Out Lows and Steady Liquidity Accumulates Below $22.6k,” Fellow Trader Daan to be continued.

“The nearest downside liquidity is now all the way to the high-volume node below $21,000. However, the upside has these levels much closer to $23.6K–$24.7K. Looks favorable to me.”

Daan also noted that the crypto “underperformed the rest of the markets this week,” but that this could already change.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.