Bitcoin’s price has been steadily climbing, and recent developments suggest that it could reach the $30,000 mark. The positive reaction to the US non-farm payrolls (NFP) report has played a crucial role in boosting investor confidence. In this article, we will explore the impact of the NFP report on Bitcoin prices and analyze key indicators that suggest a potential rally towards $30,000.
The Influence of Non-Farm Payroll Reports on Bitcoin Prices
The US Bureau of Labor Statistics regularly publishes non-farm payroll reports, which serve as essential economic indicators. These reports can significantly impact various financial markets, including Bitcoin. Investors closely monitor these reports as they provide insights into the health of the job market and the overall economy.
The most recent non-farm payroll report for September 2023 exceeded market expectations, with an increase of 336,000 non-farm payrolls. This figure was significantly higher than the consensus expectation of 170,000. The positive surprise in the report suggests a strong job market and improved economic conditions.
Bitcoin Reacts Positively to the NFP Report
Following the release of the NFP report, Bitcoin experienced a 2% price jump. The market reacted positively to the better-than-expected results, signaling a potential bullish trend for the cryptocurrency. This positive reaction can be attributed to the increased confidence of major Bitcoin investors, particularly in the United States.
US Whales Accumulating Bitcoin on Coinbase
One key indicator of increasing confidence in Bitcoin is the behavior of institutional investors, often referred to as “whales.” CryptoQuant’s Coinbase Premium Index reveals that US-based whales have been accumulating Bitcoin on Coinbase, a regulated spot trading platform.
The Coinbase Premium Index tracks the price difference between Bitcoin on Binance and Coinbase Pro. When the Bitcoin Coinbase Premium Index enters positive territory, it indicates that US investors are increasing their buying pressure. This trend suggests that institutional investors are confident in Bitcoin’s potential for growth.
Historically, when the Bitcoin Coinbase Premium Index reaches positive values, the price of Bitcoin tends to rally within days. Recent instances of this phenomenon occurred on August 29 and September 20, resulting in noticeable price gains shortly after significant buying pressure from whales on Coinbase Pro.
Bitcoin Price Prediction: Reaching $30,000
Based on the correlation between Bitcoin price and US-based whale investors’ activity, a potential rally towards $30,000 is within reach. The Global In/Out of Money Around Price (GIOM) data further supports this prediction.
If Bitcoin bulls can surpass the initial sell-wall at $29,300, it could trigger a price rally towards $30,000. The GIOM data reveals that approximately 3.1 million addresses bought 1.6 million Bitcoin at an average price of $29,300. If these buyers decide to book profits, a temporary pullback may occur. However, if the confidence of retail traders aligns with that of whales, Bitcoin’s price could surge towards the $30,000 range.
Potential Obstacles to the Bullish Prediction
While the outlook for Bitcoin appears optimistic, it is essential to consider potential obstacles that could invalidate the bullish prediction. If the price of Bitcoin reverses below $25,000, it could signal a shift in market sentiment and potentially lead to a prolonged price reversal.
The GIOM data also reveals that 635,000 addresses purchased 2.42 million Bitcoin at a maximum price of $26,613. If these buyers hold onto their positions, it could create significant support at the $25,000 level. However, a breach of this support wall could trigger a further decline in Bitcoin’s price.