Bitcoin Faces Resistance at $93.5K as Employment Data Dashes Fed Rate-Cut Hopes

Bitcoin price dropped back towards $90,000 following strong U.S. jobs data, ignoring the optimism about a possible Federal Reserve rate cut. As markets responded to the employment statistics, Bitcoin (BTC) failed to turn the yearly open into support.

Key Points:

Strong U.S. labor market data undermines hopes for a December Fed rate cut.
Cryptocurrencies diverge from stock performance amid predictions of a strong market close for equities.
Bitcoin must reclaim several resistance levels to alter the current bearish trend.

Fed Has “No Option” Over Rate Cut

Data from Cointelegraph Markets Pro and TradingView indicate a weakening BTC price due to unexpectedly low U.S. jobless claims.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Both initial and ongoing jobless claims fell below expectations, showing signs of a stronger labor market. However, markets maintain expectations that the Federal Reserve will reduce interest rates in its December 10 meeting. Analysts point to the widening gap between risk assets and consumer strength as the reason for this.

“Consumers are struggling while large cap tech stocks are soaring. More rate CUTS are coming into one of the hottest stock markets in history. Own assets or be left behind.” — The Kobeissi Letter

Fed target rate probabilities for Dec. 10 meeting (screenshot). Source: CME Group FedWatch Tool

A rate cut would likely encourage further liquidity inflows into cryptocurrency markets and risk assets. The contradictory situation in Japan, where the central bank is implementing a $135 billion stimulus package while indicating a potential rate hike, adds to the complexity.

Bitcoin Bear Case Remains Strong

As the S&P 500 hovers close to new all-time highs, Bitcoin and altcoins appear as weaker assets. Multiple resistance levels have been identified, with critical focus on the $93,500 yearly open and liquidity towards $100,000.

“Too soon to call this a bull market recovery. Need to clear those resistance levels with a healthy RSI at the Weekly Close before we can have that conversation.” — Material Indicators

BTC/USDT order-book liquidity data with whale transactions. Source: Material Indicators/X

The ongoing inability for Bitcoin to reclaim its yearly open emphasizes the strength of the bearish thesis so far. It is crucial for traders to remain vigilant as the market evolves.