Bitcoin Holds $70K As Traders Brace For US Jobs Report, Analysts Remain Cautious

• According to CryptoQuant, the recent jump in Bitcoin’s price might only be a “relief rally” rather than the start of a new bullish cycle.
• Arthur Hayes said Bitcoin has not fully decoupled from U.S. software technology stocks and warned the recent move could be a “dead cat bounce.”
• Traders are now watching for the U.S. jobs report scheduled to be released on Friday for clues on how the Federal Reserve’s monetary policy may shape up in March.

Bitcoin (BTC) held above $70,000 on Thursday night ahead of a key U.S. jobs report due Friday, with traders keenly awaiting the data for clues on how the Federal Reserve may approach rate cuts in March.

The cryptocurrency market slipped 2.6% to under $2.5 trillion, with most crypto majors trading in the red. CoinGlass data showed around $250 million in liquidations in the last 24 hours. Around $166 million came from long bets that were wiped out. 

Bitcoin’s price fell 3.2% in the last 24 hours to around $70,400 after climbing to nearly $74,000 during the previous session. On Stocktwits, retail sentiment around the apex cryptocurrency remained in ‘extremely bullish’ territory over the past day. 

Recent economic data have mostly been a pleasant surprise, pushing down the odds of a Federal Reserve rate cut. On Thursday, U.S. jobless claims held steady at 213,000, even though economists expected the number to rise to 215,000. For the jobs report on Friday, economists anticipate February’s unemployment rate to edge higher to 4.4% from 4.3% in the previous reading. 

Where Is Bitcoin’s Price Headed Next?

While Bitcoin’s price dipped lower on Thursday, the iShares Expanded Tech-Software Sector ETF (IGV) closed with a gain of 2.30% and edged 0.58% higher in overnight trade. According to Arthur Hayes, Bitcoin’s “not in the clear yet” and has not completely decoupled from U.S. software technology stocks. According to him, the rally in Bitcoin’s price could just be a “dead cat bounce” on shorts covering.

CryptoQuant maintains that Bitcoin is still in a bear market. The firm said the jump in BTC’s price was just a “relief rally” that most likely represents a temporary uptick within an ongoing bear market rather than the start of a new bullish cycle. If Bitcoin continues to rally, CryptoQuant said its first major resistance level sits at around $79,000.

Crypto analyst Ted Pillows predicted that if Bitcoin’s price manages to stay about $70,000, there’s a “decent chance” of a rally ahead.

Ethereum Holds Above $2,000

Ripple’s XRP (XRP) outperformed Bitcoin, dipping by just 1.9% in the last 24 hours. Binance Coin (BNB), Cardano (ADA), and Solana (SOL) also recorded smaller losses than Bitcoin, falling around 2% each over the past day. 

Ethereum (ETH) dipped around 3.1% in the last 24 hours, still holding above $2,000. On Stocktwits, retail sentiment around the leading altcoin fell to ‘neutral’ from ‘bullish’ territory over the past day. 

Meanwhile, Dogecoin (DOGE) fell 3.5% in the last 24 hours to around $0.093. Retail sentiment around the meme token trended in ‘neutral’ territory over the past day.

Read also: ‘Big Short’ Fame Michael Burry Pitches Bold AI Deal Ideas For Apple, Adobe — And Fires Shots At Tesla CEO Elon Musk

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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