Bitcoin (BTC) saw another rejection on August 5 with a resistance of $23,500 as US stocks failed to embrace surprisingly strong wage data.
“Collapsing real wages” mocking payroll print
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as bears kept the market within its intraday trading range.
Wall Street opened with a wail, despite US payrolls coming in at twice-estimated levels for July. The curious reaction caused some analysts to argue that the numbers actually showed no economic strength, but rather existing employees taking on second jobs due to inflation.
“The increase of 528,000 jobs in July as the employment rate fell to 62.1 means that most of the new jobs went to people who already had a job,” said Peter Schiff. responded.
“The collapse in real wages is forcing many workers to go to the moonlight to pay the bills. If the job market were strong, one job would be enough.”
Schiff was far from alone in his suspicions about the employment situation, including Wealthion CEO Adam Taggart who expressed distrust.
This 6-sigma blowout jobs report smells wrong
2 quarters of shrinking GDP, Fed busy hiking, shrinking corporate margins, large companies freezing hires or actively laying off workers – this in no way indicates strong job creation
I call BS
— Adam Taggart (@menlobear) August 5, 2022
Kyle Bass, chief investment officer at Hayman Capital Management, meanwhile, recalled the Federal Reserve’s optimism about employment in the years leading up to the 2008 global financial crisis.
— Kyle Bass (@Jkylebass) August 5, 2022
Thus, the S&P 500 and Nasdaq Composite Index both opened slightly lower on the day before a relief rally kicked off, while Bitcoin recovered from a dip below $23,000 to reach range highs again at the time of writing.
“Short corrections are possible, but the trend is still up. Looking pretty good on the higher timeframes for Bitcoin,”Countelegraph contributor Michaël van de Poppe added.
Nevertheless, data from the Binance order book raised concerns about whale activity. Notably, an entity was likely trying to exit its position altogether at its current level, warned Maartunn, a contributor to the on-chain analytics platform CryptoQuant.
A whale that wants out controls the market.
Purple ($100k – $1 million) made these steps
1. Bids below to support the price:
2. Market buys to drive up the price
3. Price was pushed up to ask
4. Heavy Market Selling
5. The bids below will be cleared
— Maartun (@JA_Maartun) August 5, 2022
“Historically, the purple class of whales has had the most impact on Bitcoin price,” added monitoring source Material Indicators, which provided the numbers.
Too many rejections?
Bitcoin traders, meanwhile, weighed the possibility of a new leg amid repeated rejections for $24,500.
Related: ‘Insane Evidence’ Bitcoin Has Capitulated In The Last 2 Months – Analysis
Popular Trading Account Profit Blue eyed $20,000 as the next major level of interest should the downtrend occur.
#Bitcoin perspective update.
The double top pattern I warned about at 24k plays out very nicely.
There is a lot more downside potential here, let’s see how the 20k level holds up next. pic.twitter.com/vyrV1rZCvO
— PROFIT BLUE (@profit8lue) August 5, 2022
“$BTC Cleared the Lows and Resting Liquidity Built Below $22.6K,” fellow trader Daan continued.
“The closest downside liquidity is now all the way at the high volume node below $21K. However, the upside has these levels much closer to $23.6K-$24.7K. Seems like a favorable direction to me.”
Crypto underperformed the rest of the markets this week, that’s for sure. But now trying to close the gap. pic.twitter.com/6JzM7MSRFf
— Daan Crypto Trades (@DaanCrypto) August 5, 2022
Daan also noted that crypto has “underperformed the rest of the markets this week”, but that could already be changing.
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