Bitcoin’s price surged above $65,000 during early trading on August 10, reaching an impressive intraday high of $65,363 before experiencing a slight pullback. As of now, the cryptocurrency is trading around $64,955, reflecting a 0.3% increase over the last 24 hours and a notable 3.4% rise over the past week.
This upward movement follows the U.S. jobs report released on Friday, which revealed a surprising loss of 23,000 nonfarm payroll jobs in July, while the unemployment rate remained steady at approximately 4.1%. Additionally, revisions for May and June led to a combined reduction of 103,000 jobs, further contributing to the market’s shifting sentiment.
The disappointing employment data has shifted market expectations significantly, with futures markets now placing the probability of a Federal Reserve rate hike in September at 44%, down from 67% just a week prior. On July 29, the Fed maintained its target rate at 3.50% to 3.75%, with three voting officials advocating for a 25 basis point increase, underlining the persistent inflation above the central bank’s 2% target.
Analyst Ted Pillows weighed in on the recent price action, asserting that as long as Bitcoin holds above the $63,000 mark, there remains a solid opportunity for upward momentum.
Institutional interest in Bitcoin is also on the rise, as evidenced by substantial inflows into U.S. spot Bitcoin ETFs. From August 3 to August 7, these ETFs recorded a remarkable $854 million in net inflows, with BlackRock’s IBIT leading the charge with a staggering $694 million. Other reports suggest a slightly higher figure of $865.3 million, highlighting the growing institutional demand for Bitcoin.
Despite these robust ETF inflows, Bitcoin traded within a tight range near $64,200 for much of last week before breaking higher on Friday. The Relative Strength Index (RSI) currently sits at 55.07, above its moving average of 50.44, indicating moderate bullish momentum, while the Awesome Oscillator remains positive at 664.19, further supporting this outlook.
Analyst Michaël van de Poppe identified $65,800 as a “critical level” in an August 9 analysis, suggesting that Bitcoin could be primed for a breakout towards at least $73,700. He noted bullish divergence in RSI and MACD readings, reinforcing the potential for upward movement.
The $65,000 to $66,000 range has consistently acted as resistance, with Bitcoin previously trading around $62,500 at the start of last week before recovering to its present levels. In the broader market, Solana has shown impressive gains, rising nearly 5% over the past week, while XRP faced a decline of 4%.
Looking ahead, the upcoming Consumer Price Index (CPI) report scheduled for Wednesday, August 12, is anticipated to be a key market catalyst. Economists forecast that headline inflation will ease to 3.4% annually, with core inflation expected to slow to 2.5%. As the market eagerly awaits these figures, the current dynamics suggest a cautiously optimistic outlook for Bitcoin and the cryptocurrency market as a whole.
