The month of October has started fairly well for cryptocurrencies such as bitcoin (BTC), but today promises to be an important day. At 2.30 pm Dutch time, the United States publishes important data about the American job market. Data that especially the Federal Reserve, the American central bank, is waiting for.
“Bitcoin Awaiting Jobs Report”
If we have the words of Neel Kashkari, the chairman of the Minneapolis Federal Reserve, believe the Federal Reserve will not change course any time soon. Only if economic conditions deteriorate significantly from here is there a chance that the Federal Reserve will stop raising interest rates and change course.
“Bitcoin appears to be consolidating around the $20,000 level as most of Wall Street awaits Friday’s jobs report,” said OANDA’s Edward Moya. Bitcoin’s next big price move depends on the Federal Reserve’s new interest rate decision.
Incidentally, there is no FOMC meeting scheduled for October, which means that the Federal Reserve will not have another interest rate meeting until November. Until then, the interest rate will therefore remain at the current level and in principle anything can happen to the market.
Analyst expects short liquidations
Twitter trader Justin Bennet calls the current bitcoin price action boring, but at the same time every range trader’s dream. As long as bitcoin continues to move in this range, Bennet can quietly take its gains. “I think it’s only a matter of time before we see short liquidations between $20,450 and $20,800,” Bennet said.
Some pretty boring markets recently, #Bitcoin in particular. This has been a range trader’s dream, though.
I still think it’s only a matter of time before we see short liquidations run between $20,450 and $20,800.
Just playing the range for now. $BTC pic.twitter.com/Xq1eRUe8nn
— Justin Bennett (@JustinBennettFX) Oct 6, 2022
If we look at the on-chain situation, we learn that the average bitcoiner is still under water with the current prices. According to Santiment analysts, this does mean that there are currently good opportunities to make money with crypto. For now, it is therefore mainly waiting for the Federal Reserve, which will largely rely on the jobs report that will be made public later today.
📊 Even with mild price rebounds for most assets these past 3 weeks, MVRV data shows that average traders are still well under water on their investments. Based on most returns across multiple timeframes, #altcoins continue to show historically beneficial levels for the patient. pic.twitter.com/kTBDmwSXlw
— Santiment (@santimentfeed) Oct 6, 2022
