Bitcoin Price Struggles
Bitcoin (BTC) found itself hovering around $19,500 on Oct. 8, with bulls struggling to regain footing after macroeconomic pressures led to a decline. The price dipped to local lows of $19,340 on Bitstamp before showing signs of consolidation.
Market Response to Economic Data
The downturn followed the release of U.S. unemployment numbers, prompting a swift reaction in crypto markets which mirrored movements in traditional equities. The dollar gained strength as positive labor data showed a drop in unemployment from 3.7% to 3.5%.
Michaël van de Poppe, founder and CEO of trading firm Eight, described the economic data as “conflicting,” noting that while some figures were positive, other reports such as job openings and PMI data painted a less favorable picture. All eyes are now set on upcoming earnings, Producer Price Index (PPI), and Consumer Price Index (CPI) reports.
Resistance at Moving Averages
On-chain analytics platform Material Indicators highlighted the ongoing resistance posed by Bitcoin’s 50-day moving average, which sits just under $20,000. The platform stated, “This week, Bitcoin had 4 consecutive rejections from the 50-Day MA,” indicating a strong barrier for BTC’s price. Following the release of the unemployment data, Bitcoin bulls lost their momentum and saw a retracement below significant support levels.
Impact of Liquidations
Market volatility led to significant liquidations for both long and short traders, with nearly $23 million in long liquidations reported on Oct. 7. Coinglass confirmed that total cross-crypto long liquidations reached almost $63 million, underscoring the market’s instability. Experts remain cautious about the support at $19,000, fearing a larger unwinding if that level is broken.
Whale Activity and Price Insights
Whale buy and sell levels are critical to monitoring price direction, as noted by analytics provider Whalemap. The report suggested that should Bitcoin’s support fail, there could be potential for a drop to $12,500, highlighting the importance of maintaining key support levels.
