Bitcoin (BTC) needs to clear above this threshold to bounce back
The US has just released its Employment Situation Summary, which describes the current state of the US labor market. Bitcoin, the dominant cryptocurrency in the market, is betting on the fresh data for a possible departure from the bear market.
Bitcoin has struggled to maintain its value within the critical $20,000 level. Despite this, investors have chosen to HODL during the upcoming crypto winter. Over 62% of the addresses with the currency have not been sold in the last year. This may indicate that investor sentiment as a whole is mixed.
Despite some investors choosing to continue holding the currency, 32% of investors chose to sell the currency after holding it for between one and 12 months, while 6% sold their currency after holding it for just one month.
Many believe Bitcoin will recover
While investor sentiment has been extremely volatile, the large proportion of investors who chose to hold indicates that many continue to believe that Bitcoin will recover. This may be the case now, as Uncle Sam has provided an overview of the overall US employment picture.
Since the release of the jobs report, the Bitcoin market has increased minimally. Coingecko reports that the price of Bitcoin at the time the report was published was $20,060.85.
However, this reasonably large price increase from the early morning price of $19,632.46 was inevitably lost during the day.
The crucial $25,000 price point
Although the price eventually fell after the study, Kitco just produced a report that identifies the potential price point to end the bear market. The report’s author, Rajan Dhall, estimated a price point of $25,066 for a total Bitcoin recovery.
According to Rajan:
“Bitcoin seems to be stuck in a rut, but the good news is that the psychological threshold of $20,000 has held for a while. After the bear flag formation was broken on August 19, from a purely technical analysis point of view it would have looked that the decline would continue.”
Rajan said a rally higher is possible if the bulls can hold above this zone, but for now the consolidation low around $17,567 is the level to monitor.
This current research along with the relatively favorable US employment picture may indicate an impending rally.
However, investors are still warming up despite the current crypto winter.
Crypto total market cap at $950 billion on the weekend chart | Source: TradingView.com Featured image from MARCA, chart from TradingView.com
