Share:
  • Bitcoin price is expected to observe bearishness for as long as the jobs report comes in below the expected level.
  • Nonfarm Payrolls in the United States are forecast to rise by nearly 179,000 in the month of April.
  • If NFPs rebound to 250,000, BTC could slip below $28,000 on a stronger US Dollar, pushing Bitcoin to $26,000.

The Nonfarm Payrolls report for the month of April will have an effect not just on the stock markets in the United States but also on the crypto market, potentially beating down Bitcoin price. However, a strong job report, considering the current market conditions, would be quite surprising.

Read more - US April Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises

Bitcoin price hinges on NFP

Bitcoin price is currently trading just under the $29,000 mark and its rise beyond $30,000 and the rest of the weekend’s performance is directly dependent on the NFP report. Also known as the Nonfarm Payrolls report or jobs report, the data exhibits the number of jobs added over the last month.

Usually, a better-than-expected report suggests that the market is strong at the moment and that people’s spending power is increasing, as is their income. This is a trigger for the US Dollar, basically strengthening the economy.

This would eventually take away from Bitcoin price since the broader market cues would turn bearish on the Dollar’s strengthening.

On the other hand, if the contrary were to happen and the report was to come in under the expected figures, then the crypto market can expect a bounce. This is because the US Dollar will weaken, potentially turning the capital towards an inflation hedge asset like Bitcoin.

That said, the month of April is forecasted to have added about 180,000 jobs. A low figure was already expected, considering the various holidays in the month as well as credit tightening from recent banking failures in the US in Q1. 

In line with the same FXStreet lead analyst Eren Sengezer stated,

“Markets are convinced that the US Federal Reserve (Fed) will leave its policy unchanged in June even though Chairman Jerome Powell refrained from comitting to a pause in the tightening cycle in the post-meeting press conference. In a case where the April job report confirms tight labor market conditions by showing a strong increase in Nonfarm Payrolls (NFP), close to 250,000, a rebound in the US Treasury bond yields and the US Dollar (USD) could be witnessed. 

On the other hand, a disappointing NFP reading near 100,000 should feed into expectations of a rate cut later in the year and cause the USD to end the week on a weak note. It will not be easy to assess the impact of the jobs report on risk sentiment with investors staying focused on the performance of regional bank stocks.”

To add to this, investors have been calling on which direction Bitcoin price would take over the weekend. 

The cryptocurrency will notice a huge bearish impact if the employment situation is shown to have improved beyond expectations in the last month. BTC could slip to $28,000 or lower and dip to $26,000, which coincides with the 50-day Exponential Moving Average (EMA) and a 100-day EMA, which jointly provide support for the cryptocurrency.

BTC/USD 1-day chart

BTC/USD 1-day chart

Should the opposite of the same happen and the jobs report come in below forecasts, Bitcoin price can be expected to breach the $30,000 barrier. Acting as a crucial resistance and a psychological support level, this price point would set the cryptocurrency up for further increases.

Thus, the next 24 hours will be important for Bitcoin price in determining the path that the cryptocurrency takes over the weekend.


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

VeChain Price Prediction: VET bears eye 10% correction

VeChain Price Prediction: VET bears eye 10% correction

VeChain price is slowly undoing the gains witnessed in the second and third weeks of September. If this trend continues, VET could stand to trigger a steep correction in the near future.

More VeChain News

Bitcoin Cash Price Forecast: BCH traders can bank on short-term bounce to $228

Bitcoin Cash Price Forecast: BCH traders can bank on short-term bounce to $228

Bitcoin Cash (BCH) price presents an opportunity that could profit traders who are bullish on the short term. Additionally, investors might get a better chance to accumulate due to a pullback to a key support level. 

More Bitcoin Cash News

Shiba Inu inspired meme coin BONE notes first rise following the 55% crash in two months

Shiba Inu inspired meme coin BONE notes first rise following the 55% crash in two months

Bone ShibaSwap price, at the time of writing, was just above $0.82, marking the first green candle since the beginning of August. Selling pressure concerning BONE is rather intense in the market, however, no major dump has been observed.

More Cryptocurrencies News

Binance reopens Belgium operations after three months of suspension by FSMA

Binance reopens Belgium operations after three months of suspension by FSMA

Binance Exchange has reopened registrations for its Belgian community to access its products and services. The restoration comes with new “Terms of Use”, as the platform looks to steer clear of regulatory mishaps.

More Binance news

Bitcoin: BTC downside likely after 20-week EMA culls bulls

Bitcoin: BTC downside likely after 20-week EMA culls bulls

Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.

Read full analysis

BTC

ETH

XRP