US Job Data Sparks Market Optimism
Bitcoin surged past the $100,000 mark on February 7 as Wall Street reacted positively to mixed US employment data. The leading cryptocurrency defied concerns over Federal Reserve policy, capitalizing on weaker-than-expected job additions.
According to TradingView, Bitcoin spiked sharply after new employment figures revealed that the US added just 143,000 jobs in January, falling short of the projected 169,000. This unexpected slowdown in job growth fuelled optimism in risk markets, including cryptocurrencies and stocks.
BTC/USD 1-hour chart. Source: TradingView
The weaker labour market report suggested that the US economy might not be as resilient to restrictive financial policies as previously thought. However, despite market enthusiasm, the latest CME Group FedWatch Tool estimates indicated that traders are now largely ruling out the possibility of an interest rate cut at the Federal Reserve’s upcoming March meeting. The odds of a 0.25% rate cut fell from 14.5% before the jobs data release to just 8.5%.
“The unemployment rate fell to 4.0%, below expectations of 4.1%,” noted trading resource The Kobeissi Letter on X (formerly Twitter). “We now have the lowest unemployment rate since May 2024. The Fed pause is here to stay.”
Bitcoin’s Technical Breakout and Key Resistance Levels
Despite macroeconomic uncertainty, Bitcoin’s sudden rise fuelled fresh optimism among traders, with many viewing the move as a significant breakout.
Popular trader Daan Crypto Trades shared a chart on X, showing that BTC/USD had broken out from a falling wedge pattern on the hourly chart. “Higher low made, now needs to break that local high at ~$102K to leave this area behind. That’s what the bulls should try to accomplish to flip the market structure back to bullish on this timeframe,” he explained.
Fed target rate probabilities. Source: CME Group
On the four-hour chart, fellow analyst Roman echoed the sentiment, predicting further gains and a strong weekly close. “1D & 1W have completely reset to break this range and continue our uptrend to 130K,” he noted. However, he pointed out that Bitcoin still faces resistance at $108,000, which could be a decisive level for the next move.
Meanwhile, another well-known trader, Skew, argued that Bitcoin must consolidate above $100,000 on lower timeframes to sustain its bullish momentum. He identified $102,000 as a crucial threshold that bulls need to surpass to confirm a trend continuation.
“Positioning likely picks up again with trend resolution,” Skew stated, suggesting that further upside momentum could emerge if Bitcoin successfully holds key levels.
Market Outlook
Bitcoin’s rise to six figures, despite ongoing concerns over Federal Reserve policy and macroeconomic conditions, reflects renewed confidence in digital assets. However, analysts caution that sustained growth will depend on Bitcoin’s ability to overcome critical resistance levels.
With traders eyeing a potential move towards $130,000, all attention will now be on whether BTC can decisively hold above $100,000 and break through $102,000 in the coming days.
