Bitcoin price likely to experience volatility if US NFP report for October exceeds expectations
- Bitcoin price stayed above $35,500, following the Federal Reserve’s decision to hold interest rates.
- The US economy is expected to have added 180,000 Nonfarm Payrolls in October, after a nearly double increase in September.
- An upside or downside surprise in the October NFP report could influence traders’ short-term outlook on BTC price.
Bitcoin hovered around the $35,500 level as investors await the US NFP report for October. The Nonfarm Payrolls figure is key for market participants as it can significantly influence traders’ perceptions on whether the US central bank will keep interest rates higher for longer, or even increase rates further.
Also read: US Fed interest rate preview: Two scenarios for Bitcoin and Ethereum prices
Bitcoin traders expect volatile market with upcoming US NFP data release
The US NFP release is key for market participants to determine the direction of Bitcoin’s price trend. BTC has experienced volatility in response to recent macroeconomic events; the US Federal Reserve’s decision to hold interest rates steady supported Bitcoin’s price rally. BTC held steady above the $35,500 level on Binance.
The US Central bank has repeated time and again that the decision to hike interest rates is data-driven. This implies that the Nonfarm Payrolls figure could feed into the decision to keep interest rates higher for longer or introduce a rate hike before the end of 2023.
The market’s expectation is that the US economy may have added 180,000 Nonfarm payrolls in October. September’s report came in at nearly double the market’s expectations and indicated an addition of 336,000 jobs.
Bitcoin price could experience a pullback in the event of an upside shock in October’s NFP release. Traders can expect BTC to recover from the correction in the short term as investor sentiment throughout October was largely driven by the possibility of a spot Bitcoin ETF approval by the US Securities and Exchange Commission (SEC).
Bitcoin Price: What to expect
Bitcoin price is likely to experience downside volatility if the jobs report exceeds expectations. As seen in the BTC/USDT price chart below, Bitcoin price is likely to find support at the 10-day Exponential Moving Average (EMA) at $34,028. BTC could bounce from this level and resume its uptrend.
BTC/USDT one-day price chart on Binance
The lower boundary of the Fair Value Gap (FVG) between $36,671 and $37,670, is likely to act as a resistance for the asset, once the BTC price resumes its rally.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
