Bitcoin advanced 3.63% to $48,810 on Wednesday, September 1. On Thursday, buyers tested the psychologically important 50k level, with price action climbing as high as $50,450. This move was stoked by a rally in Ether (ETH) and Cardano (ADA). ETHUSD spiked to $3,842, and ADAUSD to $3.09. Bitcoin drew additional support from broad-based dollar weakness amid yesterday’s sluggish ADP labor market report. Bitcoin’s domination of the cryptocurrency marked dropped to 41.40% and currently stands at 42.21%.
In 30 hours, price action gained 8.47%. By the time of writing, the BTCUSD pair was trading at $50,045. If, after this rally, buyers do not start to take profit on the W-shaped pattern, we could see an extension of the upward leg to $53,500 (interim resistance, projection from the $48,144 and $50,500 tops).
Can BTC price action pull back from the current level of $50k?
Of course it can. A key data point for the Fed is scheduled for release at 15:30 (GMT + 3) on Friday. Renewed dollar buying is preventing risk assets from strengthening. A stellar NFP print would give a shot in the arm to the dollar bulls and risk-sensitive assets would be forced to retreat. Under this scenario, Bitcoin sellers could easily turn the market around, with a selloff reaching 3-6%. There have been several such attacks, and Bitcoin is currently trading at the lower bound of its range. Conversely, a lackluster NFP reading would signal a delay in winding down stimulus, and that scenario would exert a positive impact on gold, equity benchmarks and crypto.