In spite of increasing volatility and market pressure, Bitcoin (BTC) struggles to stay above the $20,000 threshold. Additionally, the direction of the market in the upcoming months will be determined by the U.S. Fed rate hike on September 21.
Rajan Dhall, an analyst for Kitco News, says that $25,066 is one of the important essential levels to watch for since it will indicate a chance of recovery and provide a way out of the prolonged bear market.
If Bitcoin has any chance of reaching this level, it should go for $21,760 first and rely on the bulls to hold the position. On the other hand, if bears continue to be strong, Bitcoin may consolidate to a low of $17,567.
However, it is important to note that Bitcoin has seen a small increase following the US employment news. Of note, 315,000 were added in August, which was slightly more than anticipated given the rising interest rates and the weak economic expansion.
By the time of publication, Bitcoin was trading around $20,117, up nearly 3% over the previous day. The improvements also contributed to the cryptocurrency market capitalization approaching the $1 trillion threshold.
Employment Report Turned Bullish !
In addition, with Bitcoin in turmoil due to macroeconomic issues, there is expectation that the employment report would likely encourage the Federal Reserve to take more drastic steps, like hiking interest rates, to rein in the inflation that is out of control.
A favorable employment report was expected to drive Bitcoin to around $15,000. The $20,000 stake may be in jeopardy because the asset has recently been linked to macro sentiment.
Overall, if Bitcoin is able to maintain $20,000, it will probably encourage investors to believe that the crypto market has reached a bottom.
The “HODL” mode appears to have been turned on amid anticipation for the upcoming Bitcoin course. In spite of the current weak market conditions, 62% of Bitcoin owners have not sold the asset in this example in over a year.