Bitcoin Poised for Crucial $110K Test as Strong US Dollar Shakes Markets
Bitcoin Slips Amid Strong US Jobs Data
Bitcoin dropped below $111,000 on Thursday, mirroring declines in stocks and gold after stronger-than-expected US jobs data cooled hopes of imminent interest-rate cuts. The US dollar index (DXY) surged to a three-week high, intensifying pressure across risk assets.
BTC fell to $110,658 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView. Analysts warned that the cryptocurrency is now locked in a “make-or-break” zone, with a retest of $110,000 looking imminent.
Jobless Claims Challenge Fed Cut Bets
The Labor Department reported jobless claims coming in lower than expected, suggesting the labor market remains stronger than anticipated. That shift in outlook reduced investor confidence that the Federal Reserve will deliver swift rate cuts, with CME Group’s FedWatch Tool showing lower odds for October easing.
Ryan Detrick, chief market strategist at Carson Group, remarked on X, “And just like that, initial jobless claims are no longer a worry.”
The US dollar climbed sharply on the news, with the DXY marking its strongest level in three weeks. Meanwhile, uncertainty surrounding the Russia-Ukraine conflict, including reports of Russian jet interceptions over Alaska, added to investor caution.
Analysts See “Overdue” Correction in Stocks and Bitcoin
The Kobeissi Letter, a trading resource, described the pullback in equities as “overdue” and a necessary feature of healthy markets. “Bull markets do not move in a straight line,” it wrote.
Stocks and gold had both been setting record highs in recent weeks, making Thursday’s retreat sharper in context.
Bitcoin Faces “Max Pain” at $110K
Crypto analytics firm Swissblock warned that Bitcoin must reclaim $115,200 to regain bullish momentum. Failure to hold $110,000 could clear a path toward $100,000, it cautioned.
“$110K = max pain. Likely to be touched, leaving Friday’s options worthless,” Swissblock noted, pointing to the $17.5 billion in options expiring this week.
Meanwhile, other traders highlighted the possibility of a sharp rebound. Exchange data showed short-side positions dominating liquidation risk: AVAX shorts at 96.2%, ETH at 78.3%, and BTC at 69.4%.
“This is how liquidations build up. Smart money knows this is a magnet for price,” trading resource TheKingfisher commented.
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