Bitcoin’s price has fallen by approximately 3.25% in the last 24 hours, settling at $3,690 on June 8.
Despite this decline, the BTC/USD pair is performing better than the broader crypto market, which has seen a 3.75% drop in the same period.
Two main factors are driving Bitcoin’s lower prices today: better-than-expected job data in the United States and a slight reduction in the BTC supply held by its wealthiest investors.
The primary reason for Bitcoin’s price drop today is the robust U.S. employment report for May.
Nonfarm payrolls surged by 272,000, surpassing all 77 estimates in Bloomberg’s economist survey.
This positive data led to a surge in Treasury yields, with both two-year and 10-year yields rising by about 12 basis points.
As a result, stocks declined, with the benchmark S&P 500 Index down around 0.3%, while the dollar strengthened.
Higher yields typically indicate increased borrowing costs, leading to a reduced appetite for risk.
Consequently, investors tend to move away from riskier assets like stocks and cryptocurrencies in favor of safer investments.
Another factor contributing to Bitcoin’s price decline is a slight dip in the BTC supply held by its wealthiest holders.
Notably, the Bitcoin supply held by “whales” with at least 100,000 BTC has decreased by 0.2% in the last 48 hours.
This suggests that these investors are either redistributing their holdings into smaller addresses or cashing out altogether.
However, other Bitcoin supply cohorts, such as those holding 10,000-100,000 BTC and 1,000-10,000 BTC, have been accumulating in recent months
From a technical perspective, Bitcoin’s decline today started after testing its interim resistance level at around $70,000.
Since mid-March, Bitcoin has been unable to close decisively above this level.
This resistance level appears to be the neckline of Bitcoin’s prevailing inverse-head-and-shoulders (IH&S) pattern.
This classic bullish reversal setup resolves when the price breaks above the neckline and rises by the maximum distance between the pattern’s lowest point and the neckline.
If the IH&S pattern plays out as intended, Bitcoin’s primary upside target for July is over $90,000.
Conversely, a pullback from the neckline could send BTC price toward its 50-day exponential moving average (50-day EMA) at around $66,740.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
