Bitcoin (BTC) headed back toward $100,000 after the Dec. 6 Wall Street open as markets recovered from a new flash crash.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Bitcoin leaves $92K dip in the dust
Data from Cointelegraph Markets Pro and TradingView showed 2.7% BTC price gains on the day.
Market volatility edged higher after a cooling-off period, which followed a $10,000 drawdown over a single hourly candle.
“Despite tremendous volatility… Bitcoin is respecting textbook TA principles with a Daily Close followed by a retest of the top of the main triangular market structure,” popular trader and analyst Rekt Capital summarized in his latest X analysis.
“And the post-breakout retest is successful thus far.”
BTC/USD 1-day chart. Source: Rekt Capital/X
An accompanying chart revealed a so-called “Darth Maul” candle on daily timeframes, with both long and short traders liquidated to the tune of $900 million over 24 hours.
Reacting, fellow trader Daan Crypto Trades was unfazed.
“Yesterday saw close to $4B in Open Interest wiped out from the market. This was on $BTC alone. $ETH saw close to $1.5B wiped out but held better in the end,” he noted.
“These kind of flushes are pretty normal in a bull market and will happen more often. It’s the only way we keep going.”
BTC liquidations (screenshot). Source: CoinGlass
Caleb Franzen, creator of financial research resource Cubic Analytics, was no less optimistic.
“Bitcoin could have its highest daily close ever today,” he told X followers.
“That doesn’t happen during a bear market.”
Markets lock in Fed rate cut bets
The BTC price rebound was aided by cathartic United States macro data on the day.
Related: Bitcoin price metric ‘bearish since October’ warns analyst amid $10K dip
Nonfarm payrolls (NFP) numbers showed declining labor market strength, and market expectations of an interest rate cut from the Federal Reserve in December increased as a result.
Data from CME Group’s FedWatch Tool put the odds of a 0.25% cut at the Fed’s Dec. 18 meeting at nearly 89% at the time of writing. A week previously, they were at 68%.
Fed target rate probabilities. Source: CME Group
“At the same time, September and October employment was revised higher by 56,000 jobs,” trading resource The Kobeissi Letter acknowledged.
“The number of mixed signals in the labor market data is alarming. The labor market is weaker than it appears to be.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
