Bitcoin Price Retakes $21,000, May Keep Rising Due To This

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The Bitcoin price is regaining bullish momentum over todays trading session, retracing the losses seen early in the week. Once again, the cryptocurrency is under the influence of macroeconomic forces working in its favor for the first time in months.

At the time of writing, the Bitcoin price trades at $21,000 with a 4% profit in the last 24 hours and seven days, respectively. Other cryptocurrencies in the crypto top 10 are displaying similar strength, with Binance Coin (BNB) and Dogecoin (DOGE) leading the altcoin rally.

BTC’s price trends to the upside on the daily chart. Source: BTCUSDT TradingviewBitcoin Price Barrels Through Resistance Levels

Data from Material Indicators show a spike in buying pressure from investors with orders of about $100,000. These Bitcoin whales are positively reacting to todays US economic data, which signals a slowdown in this countrys job market. An analyst at Material Indicator said:

Unemployment came in at 3.7% which is 0.2% higher than forecasted and BTC whales see it as a sign that FED rate hikes may be working. Note, that one month’s report doesn’t make a trend, but right or wrong, this market reacts to every data point.

As reported by NewsBTC, the US Federal Reserve (Fed) is trying to mitigate inflation in the dollar. The financial institution is implementing a monetary tightening program by hiking interest rates and reducing its balance sheet.

For the first time in months, the Fed plans seem to be working, or at least, the data hints at this possibility. Ironically, adverse reports favor the Bitcoin price and risk-on assets in the current economic scenario. Another analyst said the following about the recent price action:

Unemployment is rising which is what the FED wants. Markets reacting positively to bad news which is good news. It’s sad that we are at the point where they want people to lose their jobs to fix inflation.

In addition to economic data, the US dollar is trending to the downside and could re-test previous support after months in an upside trend. This downside price action is contributing to the Bitcoin price upside momentum.

The hourly $DXY chart shows confirmed fakeout earlier in the session.

Still clinging to 111.80 for now, though. pic.twitter.com/ZSYvJocjHi

Justin Bennett (@JustinBennettFX) November 4, 2022

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