Bitcoin Reclaims Key Resistance Levels Amid Bullish Momentum
Bitcoin (BTC) surged to $112,900 early Friday during the European trading session, signaling a shift toward bullish sentiment among traders as they positioned ahead of the US nonfarm payroll (NFP) report. This rebound above a critical resistance zone between $111,500 and $113,000 reflects traders’ efforts to establish these levels as new support.
Short Liquidations Highlight Market Dynamics
Data from Cointelegraph Markets Pro, TradingView, and CoinGlass revealed that Bitcoin’s price action consumed considerable ask liquidity within this range, extending toward $115,000. This movement led to $14.32 million worth of short position liquidations within a single hour, underscoring the pressure on bearish bets.
Analyst Skew noted that Bitcoin’s bounce occurred alongside substantial market demand and indicated a rotation out of shorts and hedges ahead of the NFP release. Skew emphasized the necessity for Bitcoin to demonstrate sustained strength above these levels to validate the breakout.
Critical Levels for Confirming Upside Potential
Michael van de Poppe, founder of MN Capital, identified the $112,000 mark as a pivotal entry point for long traders, describing a break above this level as a significant buying opportunity. Similarly, trader Rekt Capital highlighted $113,000 as the threshold to confirm a breakout that could support further upward momentum.
These technical levels have become focal points following Bitcoin’s recent dip below $110,000, which saw buyers actively accumulating and opening leveraged positions.
Market Anticipates Impact of US Jobs Data
All eyes are now on Friday’s US jobs report, which could introduce heightened volatility to the cryptocurrency market. The Kobeissi Letter, a capital markets commentator, suggested that a contraction in the labor market remains a possibility. Such an outcome would likely intensify expectations for Federal Reserve interest rate cuts, as the central bank balances slowing economic growth with employment support.
Current market data from CME Group’s FedWatch tool indicates a 99.4% probability of a 25 basis point rate reduction at the Federal Open Market Committee meeting in September. Traders widely anticipate that this policy move could reverse recent downward pressure on Bitcoin’s price.
Conclusion
Bitcoin’s recovery beyond $112,000 has triggered critical market responses, including significant short liquidations and renewed bullish interest. However, confirmation of a sustained breakout depends on holding above key resistance levels amid the upcoming US employment data release. Investors should remain cautious given the potential for increased volatility tied to macroeconomic developments and Federal Reserve policy shifts.
