Bitcoin experienced a brisk sell-off, dropping from highs of $113,000 to $111,600 within 24 hours after the US Bureau of Labor Statistics unveiled a drastic downward revision of payroll data—slashing 911,000 jobs from previous reports (source [1]). This revision, the largest on record, revealed a significantly weaker labor market than previously thought, prompting traders to recalibrate risk strategies and spurring a cautious tone across both traditional and crypto markets (source [2]).
Technical Analysis: Key Levels and Institutional Support
Despite the abrupt pullback, technical analysis shows Bitcoin continues to exhibit an overall bullish market structure. The cryptocurrency is holding strong above its critical support zone around $111,000, and institutional accumulation remains robust. Chart specialists highlight that as long as Bitcoin does not break below $107,000, the uptrend stays intact. Sideways action or minor corrections are seen as healthy resets that relieve overleveraged positioning from previous surges (source [3]).
With CME futures and options data reflecting optimistic long-term sentiment and bond traders overwhelmingly betting on Federal Reserve rate cuts before year-end, seasoned market participants interpret the recent drop as more of a buying opportunity than a harbinger of a deeper slide (source [4]).
Macro Outlook: Fed Rate Policy and Potential for a Bitcoin Rally
The historic data revision has intensified expectations for imminent Fed rate cuts, with market consensus tilting toward at least a 25 basis point reduction at the next FOMC meeting. While inflation data later this week could stir short-term volatility, analysts point out that the macro environment now closely resembles the early 1990s, when risk assets like stocks and gold surged following aggressive rate easing amid weak jobs numbers (source [5]).
Crypto strategists believe that Bitcoin may ultimately benefit from the shift to looser monetary policy, as history suggests major asset owners reap the rewards in post-recession rebounds—so long as structural support remains unbroken. For advanced Bitcoin traders and institutional investors, all eyes are now on this week’s US inflation data and the September FOMC verdict for confirmation of the next major trend.
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