Bitcoin Fails to Beat Sellers by $23.4K as US Payrolls Upend Inflation Debate

Bitcoin (BTC) saw another rejection at $23,500 resistance on Aug. 5 as US equities failed to embrace surprisingly strong payroll data.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

‘Real Wage Collapse’ mocks payroll print

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as the bears kept the market within its intraday trading range.

Wall Street opened with a groan despite U.S. payrolls for July at an estimated two levels. The curious backlash has led some analysts to argue that the numbers don’t actually show economic strength, but rather existing workers taking second jobs due to inflation.

“The gain of 528,000 jobs in July, while the participation rate fell to 62.1, means that most of the new jobs went to people who already had jobs,” said Peter Schiff. replied.

“The collapse in real wages is forcing many workers to moonlight to pay the bills. If the labor market was strong, one job would suffice.

Schiff was far from alone in having suspicions about the state of employment, with Wealthion CEO Adam Taggart among others expressing mistrust.

Kyle Bass, chief investment officer at Hayman Capital Management, meanwhile recalled the Federal Reserve’s optimism about jobs in the years leading up to the 2008 global financial crisis.

The S&P 500 and the Nasdaq composite index therefore both opened slightly lower the day before entering a relief rally, while Bitcoin recovered from a drop below $23,000 to retarget the range highs at the time of writing.

“Short corrections are possible, but the trend is still up. Looking pretty good on higher timeframes for Bitcoin,” Cointelegraph contributor Michaël van de Poppe added.

Nonetheless, Binance’s order book data was worrying about whale activity. Notably, one entity was likely attempting to exit its position entirely at current levels, warned Maartunn, a contributor at on-chain analytics platform CryptoQuant.

“Historically, the purple whale class has had the most influence on the price of Bitcoin,” added monitoring resource Material Indicators, which provided the numbers.

Too many rejections?

Meanwhile, Bitcoin traders weighed the possibility of a new leg up amid repeated rejections at $24,500.

Related: ‘Insane Evidence’ Bitcoin Has Capitulated Over The Last 2 Months – Analysis

The popular Profit Blue trading account was eyeing $20,000 as the next major level of interest should the downtrend materialize.

“$BTC cleared out the dips and liquidity at rest that had been building up below $22.6K,” said colleague Daan. continued.

“The closest downside liquidity is now at the high volume node level below $21,000. The upside however has those much closer levels between $23.6,000 and $24.7,000. seems a favorable direction.”

Daan also noted that the crypto was “underperforming the rest of the markets this week,” but that could already be changing.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.