- Bitcoin price slipped as energy costs jumped amid the ongoing US-Iran war.
- The US will publish the latest non-farm payrolls data later on Friday.
- Economists expect the data to show that the economy added 60k jobs in March.
Bitcoin price traded in the red on Friday as concerns about Donald Trump’s war against Iran persisted, pushing crude oil prices higher ahead of the upcoming US non-farm payrolls (NFP) data. BTC dropped to $66,300, down sharply from its all-time high, with traders focusing on the upcoming non-farm payrolls (NFP) report.
Bitcoin Price at Risk Ahead of the US NFP Data
BTC remained on edge as market participants awaited the March non-farm payrolls (NFP) data, which is scheduled for release on Good Friday.
Economists polled by Reuters expect the report to show the economy reversed the job losses of February, when it shed over 92,000 jobs.
Data compiled by TradingEconomics shows that the economy likely created 60k jobs in March. This increase, while encouraging, will be driven by the healthcare sector, where thousands of Kaiser Permanente employees returned to work after a major strike.
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The report predicts that the unemployment rate rose slightly from 4.4% in February to 4.5% in March. Also, the participation rate is expected to come in at 62.3%, a modest improvement from the previous 62%.
The US labor market has been significantly soft under President Donald Trump, as companies have remained on edge due to his policies, including tariffs and the ongoing Iran war.
In particular, the manufacturing sector has continued to deteriorate in the past few months despite his tariffs, which were meant to create more of these jobs. Economists expect the upcoming report to show that the manufacturing sector lost over 7k jobs in March.
The labor market affects Bitcoin prices because it is one-half of the Federal Reserve’s dual mandate. In theory, a positive NFP report should be bearish for Bitcoin and other altcoins as this would boost the odds of a hawkish Fed.
However, the upcoming report is likely to have a minimal impact on Bitcoin and the broader crypto market. For one, the report comes on a day when many people are not trading because of the Good Friday holiday.
Also, many market participants are focusing on the ongoing Iran war that has pushed crude oil prices higher, raising concerns about inflation. The West Texas Intermediate (WTI) has jumped to $111, while Brent has moved to $109. It is the first time in a long time that the US benchmark has become more expensive than Brent.
Therefore, analysts expect US consumer inflation to continue rising, with the OECD forecasting it will reach 4.2% by the end of the year. One reason for this is that the Iran war will take longer than Trump’s two-week plan, as Iran will have a say on when it will end.
Bitcoin Price Prediction: Technical Analysis
The three-day chart suggests Bitcoin’s price may be on the cusp of a strong bearish breakdown in the coming days or weeks.
It has formed a small head-and-shoulders pattern, which often leads to a strong bearish breakdown. Also, the coin has been forming a second bearish flag pattern since October last year.
Bitcoin remains below the important support level at $74,568, its lowest level in April last year. It also formed a death cross pattern.
Therefore, the most likely Bitcoin price prediction is bearish, with the next immediate target being at $60,000, the lowest level this year. A drop below that level will point to more downside, potentially to $50,000.
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