Bitcoin, the world’s most popular cryptocurrency, has broken through the $112,000 barrier, reaching $112,900 on Friday, as bulls set off a significant support level for the main support. This development has sparked excitement among investors, with many anticipating further market volatility following the release of the US job report.
The Bitcoin price surge has been accompanied by a liquidation of BTC short positions worth $14.32 million, according to data from Coinglass. This has led analysts to speculate about a potential “major short squeeze.” Bitcoin bulls are attempting to transform key resistance levels into support, with the zone of $111,500 to $113,000 forming a crucial cluster of ASK liquidity for order books.
Market Analysis and Predictions
Analyst Skew commented on the performance of BTC, stating that the price is “backed by decent depth of offer (market demand) and $100 million.” Skew added that there is a clear rotation of shorts and hedges going into a significant NFP day, with the majority expecting further progress on the reduction in installments. To confirm the breakout, the price must show signs of “strength and demand” over key levels.
Michaël van de Poppe, a well-known analyst, identified $112,000 as a level that offers a good entry point for long traders. If the BTC price breaks through $112,000, it will be “another massive long chance,” he said. Rekt Capital marked $113,000 as a level that would “completely confirm the breakout” and increase the chances of a sustainable upward trend.
US Job Data and Its Impact on the Market
The release of the US job report on Friday has significant implications for the market. The Kobeissi letter, a capital market commentator, noted that a “contracting labor market” cannot be ruled out. A weaker-than-expected job report would signal a slowdown in the job market, potentially leading to a reduction in interest rates. This, in turn, could increase expectations for a 25-50 basis point cut, as the Fed prioritizes supporting employment over cooling down growth.
Market participants are now expecting a 99.4% probability that the Fed will reduce the benchmark rate by 25 basis points in its September meeting, according to the CME group’s FedWatch tool. This development could trigger a turn in the BTC price, with many traders hoping for a positive outcome.
This article does not contain investment advice or recommendations. Every investment and trade movement carries risk, and readers should conduct their own research before making a decision. For more information on Bitcoin and market analysis, visit https://cointelegraph.com/news/bitcoin-analysts-see-massive-move-btc-price-regains-112k?utm_source=rss_feed&utm_medium=rss_category_market-analysis&utm_campaign=rss_partner_inbound
