Key points:
Bitcoin falls with stocks and gold on stronger-than-expected US jobs data.
The US dollar index reaches its highest levels in three weeks as jobless claims come in below expectations.
$110,000 is an increasingly “likely” BTC price target next.
Bitcoin (BTC) looked “likely” to revisit $110,000 on Thursday as macro and geopolitical factors fueled BTC price weakness.
US jobless claims pressure risk assets across the board
Data from Cointelegraph Markets Pro and TradingView confirmed new local lows of $110,658 on Bitstamp.
US jobless claims data came in below expectations on the day — a sign that labor market weakness may not be as acute as thought.
This caused markets to become less confident about Federal Reserve interest-rate cuts, per data from CME Group’s FedWatch Tool.
“And just like that, initial jobless claims are no longer a worry,” Ryan Detrick, chief market strategist at capital market company Carson Group, wrote in part of a reaction on X.
US dollar strength surged as a result, with the US dollar index (DXY) hitting three-week highs while crypto, stocks and gold fell.
The mood was not helped by uncertainty over the Russia-Ukraine conflict amid reports of Russian jet interceptions over Alaska.
Commenting on risk-asset behavior, trading resource The Kobeissi Letter called the stocks pullback “overdue.”
“Healthy bull markets do not move in a straight line,” it reasoned.
As Cointelegraph reported, stocks and gold had previously been setting record highs.
$110,000 make-or-break for BTC price
On BTC price action, crypto market insight company Swissblock warned that the market “sits in a delicate balance.”
Related: Biggest long liquidation of the year: 5 things to know in Bitcoin this week
“Bitcoin lost $113K and hovers under $112K: a retest of $110K looks imminent,” it warned X followers in part of a post.
Swissblock argued that BTC/USD needed to reclaim $115,200 to have a shot at revisiting the top of its range. Losing $110,000, on the other hand, would open up the path toward the $100,000 mark.
“$110K = max pain. Likely to be touched, leaving Friday’s options worthless,” it added, referring to the upcoming $17.5 billion options expiry event.
Bullish crypto takes focused on topside exchange order-book liquidity. With markets heavily short, a “squeeze” higher seemed all the more probable.
“Look at the overwhelming short-side dominance in potential liquidations,” trading resource TheKingfisher reiterated in a commentary on proprietary data.
“$AVAX short-side is 96.2% of the pending liqs. $ETH at 78.3%. $BTC at 69.4%. This is how liquidations build up. Smart money knows this is magnet for price.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
