Bitcoin price dives below $27,000 ahead of US Nonfarm Payrolls May report

Crypto market participants are closely watching the US Nonfarm Payrolls (NFP) report that is due to be released by the Bureau of Labour Statistics (BLS) on Friday. Market expectations anticipates 190,000 jobs were likely added in May. 

The addition of payrolls has eased over the past few months, alongside a decline in wage growth. The market consensus for the unemployment rate is a slight increase from 3.4% to 3.5% in May. 

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Market expectations from the US Nonfarm Payrolls report

The NFP is considered an indicator that provides insight into the state of employment across the US. The effects of the Nonfarm Payrolls data tend to be limited to currency pairs involving the US Dollar. This implies there is an impact on cryptocurrencies like Bitcoin and Ethereum. 

Hotter-than-expected job report supports the US Dollar Index and increases the selling pressure on risk assets like Bitcoin and Ethereum. This is likely to slow down the recovery of the two largest cryptocurrencies by market capitalization. 

FXStreet economic indicator for US Nonfarm Payrolls May release

Bitcoin opened June below the $27,000 level after closing May with the first monthly loss of 2023. Bitcoin price is therefore likely to face a challenge in its recovery to the April 2023 peak of $31,049. 

Bitcoin/US Dollar one-day price chart 

As seen in the price chart above, Bitcoin price is likely to find support at the 200-day Exponential Moving Average (EMA) at $25,150 in the event of further decline. 

If Bitcoin price climbs higher, it faces resistance between $27,709 and $28,929 on its path to the April peak of $31,049.