Share:
  • Bitcoin price is exhibiting waning bullish momentum on the 12-hour chart, trading at $43,241.
  • The consensus forecast suggests a 180,000 increase in Nonfarm Payrolls in November.
  • A strong labor market is likely to motivate the US Fed to maintain its 'higher for longer' interest rate policy narrative.

Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the Bureau of Labor Statistics (BLS) of the United States. This time around, the NFP data is expected to cause a dip in the value of BTC.

US NFP: Forecasting an increase

The forecasts regarding the November figures of the Nonfarm Payrolls are currently at 180,000, marking an increase from October’s 150,000. This would mean that the unemployment rate would remain unchanged at 3.9%.

The NFP report has proven to have a considerable impact on the crypto prices, just as it has on other investment classes. Strong jobs reports, i.e. increase in jobs, tend to strengthen the dollar as the increase is a sign of a stronger economy. This has a negative impact on stocks, commodities, etc, and since crypto happens to share a positive correlation with the share market, particularly BTC, it faces correction.

Conversely, a weak NFP report proves to provide a bullish outlook for crypto since a lower-than-expected increase in jobs weakens the US Dollar, causing a rally for stock and other markets.

Furthermore, in the event the NFP figures are stronger than expected, the Federal Reserve tends to keep the interest rates high. This is done in order to tighten the monetary policy to control inflation. Thus, even if the Fed doesn't increase the rates in the next meeting, they might keep it stable at 5.25% to 5.50%.

Consequently, Bitcoin price will most likely face correction; however, given the bullish developments in the stock markets, including the potential spot BTC ETF approvals coming soon, the decline may not be excessive.

Bitcoin price to note a dip

Bitcoin price is presently trading at $43,241 after failing to breach $44,500, resulting in minor corrections. While at the time of writing, the broader market outlook is bullish, the short-term picture is slightly leaning toward bearish. 

This is evinced by the Moving Average Convergence Divergence (MACD) indicator. The receding green bars suggest waning bullishness, which means that Bitcoin price is susceptible to a decline.

However, BTC will, at most, fall back to $42,000 or $40,000 if the former support level is lost. This is the short-term scenario considering a stronger-than-expected NFP report.

BTC/USD 12-hour chart

BTC/USD 12-hour chart

But if the report is weaker or the broader market cues switch to bullish, a bounce back from $42,000 is likely. This would boost the price rise, pushing Bitcoin price beyond $44,500 and invalidating the bearish thesis.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE’s social dominance and relevance have been increasing since February 20. This week, top cryptocurrency exchanges have shared PEPE and related memes in tweets on their official X handle. 

More PEPE News

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI and Omni Foundation could help NFTs across the Ethereum ecosystem transition to scaling solutions and rollups. The two have proposed a new token standard, xERC-721, with a “code minimized” upgrade to the current standard. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

More Bitcoin News

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price inches closer to support at $0.52 after the recent developments related to the SEC’s lawsuit against Ripple. Kraken cited a key part of the SEC’s lawsuit against Ripple that could impact the outcome of its own legal battle against the regulator. 

More Ripple News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP