Bitcoin price rose slightly on Friday morning, moving to a high of $111,700 as investors waited for the upcoming non-farm payrolls data, which will help to determine the future of the Federal Reserve’s interest rates. So, can BTC price surge and revisit its all-time high as the odds of Federal Reserve interest rate cuts increase?
Gold Price Soars as Fed Cut Odds Jump Ahead of the NFP Data
Most Wall Street analysts and investors are convinced that the Federal Reserve will cut interest rates in the coming meeting later this month as the labor market deteriorates.
A report released on Thursday by ADP showed that the economy created fewer than 70,000 jobs in August, significantly lower than the previous month and below analysts’ expectations.
These numbers, together with another report showing that vacancies dropped in July, mean that the official non-farm payrolls data will be much lower than expected. Analysts expect the data to show that the economy added 75,000 jobs in August as the unemployment rate rose to 4.3%.
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In his recent statement at the Jackson Hole Symposium in Wyoming, Jerome Powell hinted that the Fed would now cut interest rates as it is more concerned about the labor market instead of inflation.
The odds of a cut, together with the recent firing of Lisa Cook by President Donald Trump, explain why the gold price has surged in the past few days and moved to a record high.
With the gold price rising and ETF inflows increasing, there is a likelihood that the gold price will continue to rise and possibly retest the all-time high in the coming weeks.
Bitcoin Price Technical Analysis
The daily chart shows that BTC price has bounced back in the past few days, moving from a low of $107,113 last week to $111,300 today.
It remains below the 50-day Exponential Moving Average (EMA), a sign that a bullish breakout is yet to happen. Most importantly, the coin has retested the important resistance level at $112,000, which was the lowest point in March this year.
Moving back to that level is a sign of a break-and-retest pattern, which often leads to a continuation. $112,000 was the neckline of the double-top pattern.
Therefore, the most likely scenario is where Bitcoin price remains under pressure and resumes the downtrend, potentially to $100,000 in the coming weeks.
Bitcoin will likely revisit its all-time high later this year once the ongoing bearish sentiment wanes.
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