Key Takeaways
U.S. labor market remained robust in August despite growing economic concerns.
Bitcoin and Ethereum posted moved higher on Friday following the report.
Still, both cryptocurrencies remain in a bearish posture from a long-term perspective.
Share this article
Bitcoin and Ethereum appear to be edging closer to a major price movement as investors’ sentiment improves following the latest U.S. labor report.
Make-Or-Break for Bitcoin and Ethereum
Bitcoin and Ethereum have experienced a small boost after the latest U.S. Labor Department report revealed that employment stayed solid in August.
Job growth in the U.S. slowed down in August but remained strong despite economic concerns and rising fears of recession. The Labor Department report revealed that employers added 315,000 jobs over the past month. The U.S. unemployment rate increased to 3.7% from 3.5% in July, slightly higher than expectations.
The data released Friday appears to have been welcomed by investors. Bitcoin has recorded a price increase of around 2% while Ethereum has pulled out ahead registering a 5% gain at press time. Despite the recent jump, technical factors still point to a steeper correction in the near future.
Bitcoin appears to have broken out of a bear flag on August 26. This technical formation anticipates a spike in sell pressure could push BTC into a 44.6% correction toward $11,850. Despite the pessimistic outlook, the top cryptocurrency looks primed for a small rebound before it hits a lower low.
A decisive daily candlestick close above the 10-day moving average at $20,340 may give Bitcoin the strength to rise toward the 50-day moving average at $22,000.
Ethereum also appears to be developing a bearish technical formation on its daily chart. ETH could be forming the right shoulder of a head-and-shoulders pattern. A rejection from the 50-day moving average at $1,650 could increase the odds of a steeper correction in the near future.
If this were to happen and Ethereum dips below the $1,430 support level, a 30% correction to $1,000 becomes a strong possibility. For ETH to advance higher, it must slice through the 50-day moving average to invalidate this bearish thesis. Doing so could induce a surge toward its 200-day moving average at $2,100.
Given Bitcoin and Ethereum’s ambiguity, it is imperative to wait for a decisive close above support or below resistance before trying to time their next major price movements.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Be the first to comment