Bitcoin faced a turbulent day on Sept. 6, plunging to a new one-month low after briefly spiking in response to the latest US employment data. The price of Bitcoin initially surged towards $57,000 before sharply reversing, reaching a low of $54,919 on Bitstamp.
Bitcoin’s Price Volatility Amid Jobs Data
The latest US nonfarm payroll data for August revealed weaker-than-expected job growth, intensifying concerns over the strength of the labor market. In reaction, Bitcoin’s price fluctuated, confusing traders with its erratic movements. After a brief rally, BTC fell below the $55,000 mark, signaling increased uncertainty in the market.
BTC/USD 1-hour chart. Source: TradingView
At the same time, calls for interest rate cuts gained momentum. New York Federal Reserve President John Williams suggested that with inflation stabilizing, it was time to reduce the restrictive stance on monetary policy. The decision on a possible rate cut is expected during the Federal Reserve’s meeting on Sept. 18.
Market Split on Rate Cut Prospects
Following the jobs data release, CME Group’s FedWatch Tool indicated a near-even split in market expectations. Traders are now pricing in a 53% chance of a 25-basis-point rate cut and a 47% chance of a 50-basis-point cut.
US dollar index (DXY) 1-hour chart. Source: TradingView
The US dollar index (DXY) also saw a boost, jumping 0.3% after the data release. However, popular trader Daan Crypto Trades remains bearish on the dollar’s long-term outlook, predicting a drop below the 101 support level, which could benefit risk assets like Bitcoin.
Bulls Struggle as Bitcoin Faces Resistance
Despite short-term gains, Bitcoin continues to face resistance. Analyst Rekt Capital highlighted a developing bullish divergence on 4-hour timeframes, as the price remains trapped in a downtrending channel. Repeated rejections off key resistance levels have frustrated bullish traders, with further price action likely to depend on the ability to break above these barriers.
As uncertainty lingers, the battle between bulls and bears continues, leaving the market in a state of flux heading into September.
