Bitcoin (BTC) Weekly Outlook – Rising US Job Fears, Geopolitics in the Spotlight

Bitcoin prices nosedived overnight following excessive selling in the Asian session as market sentiment soured. This was the first Asian session since the US

Bitcoin prices plunged sharply overnight as market sentiment soured following the US jobs report on Friday.

Bitcoin prices dropped as low as $50,283 in the Asian session on Monday as market sentiment appeared to sour following the US jobs report on Friday. This marked the first Asian session following the jobs data, and the selling pressure was evident from the early hours of the session.

The crypto market is often viewed as a good indicator of market sentiment, and Bitcoin’s plunge from $58,000 to $53,000 within two hours highlighted the selling pressure. The selloff extended to a range of risk assets, with Bitcoin briefly dipping below the $50,000 mark.

However, the world’s largest cryptocurrency recovered quickly and was trading around the $55,000 mark at the time of writing. The Crypto Fear and Greed Index also fell sharply, dropping from 74 a week ago to 24 now.

The sharp downward move in the Asian session led to over $740 million in leveraged positions being wiped out across the crypto market in the last 24 hours, with more than $644 million in leveraged longs being liquidated, according to CoinGlass data.

Traders seeking leveraged exposure to Ether were hit the hardest, with over $256 million in ETH longs liquidated, while $231 million in BTC longs were forcibly closed.

The selling pressure eased in the US session, with markets showing signs of recovering from the sharp sell-off on Friday. The US indices rose nicely, with the Nasdaq 100 recovering a significant chunk of its pre-market losses.

This may lead some traders to view it as a potential “buy the dip” opportunity, as we have heard in the past. However, market participants should proceed with caution and consider the overall market conditions and technical levels before making any trades.

According to John Schlegel, head of positioning intelligence at JPMorgan, “Overall, we think we’re getting close to a tactical opportunity to buy-the-dip and our Tactical Positioning Monitor could dip further in the next few days. Having said that, whether or not we get a strong bounce could depend on future macro data.”

Bitcoin enthusiasts are generally bullish in the medium and longer term, as markets are pricing in more aggressive rate cuts. This usually leads to a positive run for crypto as market participants will have more money in their pocket.

Whether the lows are in and the selling is over, that remains to be seen.

From a technical perspective, Bitcoin did not close below the $50,000 mark on the H4 or Daily chart, which is crucial. A candle close below $50,000 is necessary for Bitcoin to test the $45,000 support area.

Below this, there’s a key support zone around the $43,000 level, where the rally to all-time highs began back in February.

If the $50,000 level holds, Bitcoin could continue to advance, with immediate resistance at the 56,561 and 58,586 levels. A push beyond these levels will shift focus to the 50, 100, and 200-day moving averages (MAs), which all lie within a $3,000 range between 61,538 and 64,350.

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