Key Takeaways
- Bitcoin drops to $54,400 following weaker U.S. jobs data.
- New York Fed President signals possible interest rate cuts in September.
- Bitcoin remains in a short-term downtrending channel, frustrating bulls.
Bitcoin briefly surged before the U.S. stock market opened on Sept. 6, but quickly fell below $55,000.
After reaching $54,400, this marked its lowest point in a month.
The dip followed disappointing August nonfarm payroll data, which highlighted concerns about the strength of the U.S. labor market.
Fed president
Meanwhile, New York Fed President John Williams hinted at potential interest rate cuts, noting that monetary policy has helped balance the economy and inflation.
Market forecasts for rate cuts are divided, with a near-even split between expectations of a 25-basis-point or 50-basis-point reduction.
As the U.S. dollar briefly strengthened by 0.3%, Bitcoin erased its earlier gains. However, some analysts, including Daan Crypto Trades, expect continued long-term weakness in the U.S. dollar, which could benefit risk assets like Bitcoin.
Short-term analysis shows Bitcoin trapped in a downtrending channel. According to trader Rekt Capital, bulls face challenges as price rejections continue despite rising relative strength index (RSI) levels, suggesting a potential bullish divergence.
