Bitcoin Price and Ethereum – Positive US Non-farm Payroll to Put Pressure on Cryptocurrencies
During the early European session, the global cryptocurrency market capitalization fell 1.39% to $957.46 billion.
With a 24-hour volume of $3.11 billion, DeFi accounted for 5.55% of the entire cryptocurrency market. This represents 92.59% of the total 24-hour volume in the cryptocurrency market, or $51.82 billion.
Investors in the United States factored in the surprisingly positive non-farm payroll and unemployment figures during the European session. As a result of this news, the leading cryptocurrency, Bitcoin, tumbled 3.13% for the day.
While the second most valuable cryptocurrency, Ethereum, ended up falling 2.92% to trade at $1,334.
US Non-farm Payroll & Unemployment Rate
US Non-farm Payroll: According to the US Bureau of Labor Statistics, total non-farm payroll employment increased by 263K in September, while economists predicted a gain of 248K jobs from the previous month. Even though the 263K figure is the lowest monthly increase since April 2021, it is still higher than the 250K figure that was expected by the market.
With increased interest rates and costs, the economy began to slow in the eighth month of the year, resulting in a reduction from the average of 439K in the first eight months to the current reading of 220K in September.
Unemployment Rate: On the other hand, the US labor market conditions in the world's largest economy are closer to the best. The unemployment rate in the United States fell to 3.5% in September 2022, matching July's 29-month low and coming in below market predictions of 3.75%.
In September, the number of people without jobs fell by 261K to 5.75 million, while the number of people with jobs rose by 204K to 158.9 million. Participation in the labor force decreased slightly from 62.4% to 62.3%.
What Impact Could Positive Labor Market Data Have on the Cryptocurrency Market?
This latest set of data comes as the US central bank, the Federal Reserve, has been working for months to reduce inflation, which is currently hovering near its highest annual rate in more than 40 years. It is widely anticipated that the central bank will continue its rate-hiking program, which has already resulted in five rate increases this year totaling 3%, through at least the end of the year.
Fed officials, including Chairman Jerome Powell, have stated they anticipate the rate hikes will continue to pressure the markets. In September, members of the Federal Open Market Committee said that they anticipate the unemployment rate will climb to 4.4% in 2023 and remain at that level for the foreseeable future before declining to 4%.
To keep up the momentum of its rate hikes, the Fed is largely expected to implement another 0.75 percentage point increase in rates in November.
The markets have priced in an 82% chance of a three-quarter point shift in response to the employment data, and they anticipate another half-point increase in December, bringing the federal funds rate to a range of 4.25%–4.5%.
Hence, it negatively impacts the cryptocurrency market and may drive a downward trend in the Bitcoin price.
Bitcoin Price Prediction & Technical Outlook
The current Bitcoin price is $19,619.66, and the 24-hour trading volume is $31 billion. Bitcoin has fallen by 3.13% in the last 24 hours.
In my previous Bitcoin update, I mentioned that the BTC/USD pair had formed a descending triangle pattern, extending significant resistance near $20,478.
During the early Asian session, Bitcoin failed to break above the trendline resistance and fell below the 50-day moving average, providing immediate support near the psychological level of $20,000.
Bitcoin is forming a "three black crows" candlestick pattern on the daily timeframe, indicating the beginning of a downtrend. Therefore, Bitcoin may continue to fall toward an immediate support level of $18,970, and a break below this level may extend selling until $18,415.
Ethereum Price Prediction & Technical Outlook
The current price of Ethereum is $1,334.28, with a 24-hour trading volume of $10.24 billion. In the last 24 hours, Ethereum has dropped 2.92%.
The ETH/USD pair is trading exactly in line with our Asian session report, remaining in the same narrow trading range of $1,300 to $1,400. ETH has failed to break out of the range amid a stronger-than-expected US employment report.
On the daily timeframe, an ascending triangle remains intact, extending resistance near $1,400 and providing immediate support near $1,300.
Leading technical indicators such as the RSI and MACD are now showing divergence, with the RSI signaling selling while remaining below 50 and the MACD indicating a buying trend. The 50-day moving average, on the other hand, indicates a selling bias in Ethereum.
That said, a bearish breakout of the $1,300 level could push ETH further down to the $1,225 or $1,110 mark.
New Altcoin News
Despite a bearish trend in cryptocurrency, a few altcoins are making headlines. A new protocol, IMPT, is being developed to assist businesses and individuals in tracking and controlling their carbon footprint. IMPT is currently on presale, raising over $1.6 million in only four days.
On the other hand, the meme coin, Tamadoge, which has gained more than 220% from its all-time low of $0.01683, is also in the spotlight. The ultra-rare Tamadoge Pets are now available on OpenSea.
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