Bitcoin (BTC) endured fresh volatility on Jan. 10 as US macroeconomic data dented hopes of crypto capital inflows.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Bitcoin wobbles on US nonfarm payrolls beat
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD abruptly falling $1,500 as December nonfarm payrolls (NFP) data beat expectations.
Showing a stronger labor market, NFP pressured risk assets across the board and was joined by lower-than-anticipated unemployment figures.
The Federal Reserve, markets implied, would now be less likely to cut interest rates as much or as quickly as previously thought. This, in turn, would reduce the likelihood of liquidity flowing into those assets, as well as Bitcoin and crypto.
The latest data from CME Group’s FedWatch Tool put the odds of even a smaller 0.25% cut at the Fed’s January meeting at just 2.7%.
Fed target rate probabilities. Source: CME Group
“NFP comes in HOT, the UNRATE comes in cold which is great news for the strength of the economy, so why did BTC and the broader market dump? Simple. This points to fewer FED Rate Cuts in 2025,” Keith Alan, co-founder of trading resource Material Indicators, wrote in part of a reaction on X.
Alan acknowledged that the holiday season had likely impacted the numbers, and any influence on the market may soon be overshadowed by the start of President-elect Donald Trump’s new term.
“Worth noting that the holiday season typically means an increase in hiring, and that had an influence on the reports,” he continued.
“Also worth pointing out that the market is speculating on the entire year despite the fact that we have a new administration coming in 10 days that is going to enact policies that likely have a profound impact on the economy.”
BTC/USDT liquidity data for Binance. Source: Keith Alan/X
One of the two accompanying charts showed liquidity conditions on the Binance BTC/USDT order book, with $88,000 and $90,000 now standing out as support zones.
The macro dip punctured what had been a highly unusual day of BTC price action, which on hourly timeframes had produced 14 consecutive green candles — a first since 2017.
Responding, however, traders paid little attention, with BTC/USD overall trading within a familiar range, with support and resistance levels clearly visible.
“Market is either up only or down only on these smaller timeframes. In the end many get chopped up,” popular trader Daan Crypto Trades told X followers.
“Zooming out is my recommendation.”
Analyst sees “high probability” of BTC price reversal
Fellow trader and analyst Rekt Capital struck an optimistic note.
Related: Bitcoin speculators panic sell at $92K in ‘good time for accumulation’
Analyzing the daily chart, he noted an ongoing bullish divergence playing out on the BTC/USD relative strength index (RSI) indicator.
Earlier, Cointelegraph reported that the hourly RSI had hit its lowest levels since the start of October.
“Bitcoin is showing signs of a Bullish Divergence at Range Low support of $91000,” he reported on the day.
BTC/USD 1-day chart with RSI data. Source: Rekt Capital/X
Another X post reiterated the idea that a pullback from all-time highs was a phenomenon shared by previous Bitcoin bull markets.
“Bitcoin started its current -15% pullback in Week 7 of Price Discovery. The timing of this retrace is in line with historical tendencies,” Rekt Capital confirmed.
“It is the first Price Discovery Correction of this cycle. As a result, it has a high-probability of reversal.”
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.
