Bitcoin continues to struggle, failing to halt its recent decline, as traders brace for the impact of upcoming US jobs data. On September 5, Bitcoin briefly touched $57,000 during the Wall Street open, but the relief was short-lived, with BTC/USD down 2.3% on the day.

US Jobs Data Fuels Interest Rate Cut Speculation

Macroeconomic data, including a miss in private-sector payrolls, reinforced expectations for an interest rate cut by the US Federal Reserve. Payrolls rose by just 99,000, significantly below the anticipated 144,000, marking the smallest gain since 2021. Market commentators on X expressed concerns over the weakening labor market, with traders now closely watching the Fed’s upcoming meeting on September 18.

BTC/USD 1-hr candle chart. Source: TradingView

Adding to the uncertainty, the Job Openings and Labor Turnover Survey revealed a drop to 7.67 million job openings, lower than the expected 8.1 million. Analysts believe that as the Fed focuses more on employment, the rest of this week’s data will play a crucial role in determining the scale of potential rate cuts.

Bitcoin Faces “Double Bottom” Risk

As traders await further unemployment data on September 6, Bitcoin faces potential downside risk. Keith Alan, co-founder of Material Indicators, highlighted the possibility of BTC retesting the August lows of $49,500, forming a “double bottom” pattern. This move could act as a key backtest for Bitcoin’s broader uptrend.

Fed target rate probabilities. Source: CME Group

A significant support level to watch is the 50-week simple moving average (SMA), currently at $53,355. Popular trader CrypNuevo speculated that Bitcoin could see a relief bounce above $60,000 if upcoming labor market data provides a boost. However, with liquidations gathering between $60,000 and $60,200, the path remains uncertain.

As markets await the next Federal Open Market Committee (FOMC) meeting, the upcoming data releases will likely set the tone for Bitcoin’s next move.