Bitcoin breaks past $21,000 as bulls regain advantage
Bitcoin (BTC) has hit a new seven-week high after a series of failed attempts to break past the $21,000 level. The asset’s latest rally is inspired by the October US jobs report that beat analysts’ estimates.
At press time, the flagship cryptocurrency was trading at $21,200, up nearly 5% in the past 24 hours. Interestingly, prior to the jobs data, Bitcoin had shown signs of correcting below $20,000 following the sustained tightening attack from the Federal Reserve.
The breakout comes after Bitcoin’s sideways trading pattern, with the asset consolidating between $19,000 – $20,000. Despite threats to slip below $20,000, some analysts believed that bulls had a technical advantage over bears.
Bitcoin’s Bullish Advantage
For example, according to News from Kitco analyst Jim Wyckoff, Bitcoin still has room for an upside breakout.
“Prices are in a sideways trading range on the daily chart. The direction that prices ‘break out’ of the trading range is likely to be the direction of the next significant trending price move. Bulls have the slight overall technical advantage in the short term, giving technical odds a little in in favor of an upside breakout from the trading area, he said.
Notably, in October, the U.S. added 261,000 jobs, beating analysts’ estimates of 205,000 jobs, while the unemployment rate hit 3.7%, hitting the 3.5% target.
Implication of job data
Overall, the market anticipated the jobs data since it informs the Federal Reserve’s possible direction in dealing with soaring inflation. In fact, a challenging macroeconomic backdrop led by high inflation and rising interest rates has affected Bitcoin and other risk assets with digital asset trading in tandem with stocks.
At the same time, the Bitcoin price remains bullish, hovering above $20,000, and if the new buying pressure is sustained, the asset could test new levels.
Furthermore, there is optimism among the crypto community that Bitcoin will stabilize above $21,000. As reported by Finbold, CoinMarketCap predicted the crypto community that Bitcoin would trade at an average price of $21,451 by the end of November 2022.
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