Bitcoin retreated after stronger-than-expected U.S. August nonfarm payrolls data weighed on risk assets and pushed the crypto market lower. On Sept. 5, BTC fell from a 24-hour high of $81,423 to a low of $78,660, and was trading at $79,583 at the time of writing, down 1.81% over the past day. Ether moved in the same direction, slipping 2.06% to $2,452, while other major tokens also came under pressure.
August payrolls data put pressure on risk assets
The market’s attention centered on U.S. Labor Department data released the previous day. The report showed that nonfarm payrolls rose by 162,000 in August, ahead of market expectations and pointing to continued resilience in the labor market. After the release, the U.S. dollar index strengthened in short-term trading and Treasury yields climbed, lifting expectations that the Federal Reserve could keep policy tight.
All three major U.S. stock indexes finished lower. The Dow Jones Industrial Average fell 272 points, the S&P 500 lost 29 points, and the Nasdaq dropped 77 points. The weaker risk tone spread to crypto, adding downside pressure on both Bitcoin and Ether.
$402 million liquidated in 24 hours, with longs taking the bigger hit
Across the crypto derivatives market, liquidations totaled $402 million over the past 24 hours. Long liquidations accounted for $277 million, while short liquidations came in at $125 million. In total, 89,201 traders were liquidated.
The largest single liquidation order was recorded on Binance’s BTCUSDT contract, valued at $23.17 million.
Major tokens decline, XRP posts the steepest drop among top names
Among the top 10 cryptocurrencies, XRP posted the largest decline, falling 3.48% to $1.3952. Its 24-hour range was $1.3836 to $1.4625. SOL fell 1.82% to $101.83 and held above the $100 level for now.
Bitcoin’s highest price over the past 14 days was $81,731, recorded at 4 a.m. on Sept. 4. Its lowest point in that period was $75,971 on Aug. 23, leaving the asset in a broader range-bound pattern.
Technical indicators show BTC remains above key moving averages
On the daily chart, Bitcoin closed at $79,661, still above its SMA20 at $75,626, SMA50 at $68,815, and SMA200 at $69,658. The moving averages remained in bullish alignment. RSI14 stood at 66.5, placing it in a relatively strong zone. MACD showed a bearish alignment, and the histogram expanded from the previous day, indicating stronger downside momentum.
The middle Bollinger Band was at $75,626. Resistance levels were identified at the 30-day high of $82,300 and the upper Bollinger Band at $86,543. Support levels were listed at the SMA20 of $75,626, the SMA200 of $69,658, and the SMA50 of $68,815.
Ether closed at $2,456 on the daily chart, also above its SMA20 of $2,360, SMA50 of $2,078, and SMA200 of $2,035. RSI14 came in at 62.7, also in a relatively strong zone. MACD remained in bearish alignment and its downside momentum continued to build.
For Ether, the middle Bollinger Band at $2,360 was cited as near-term support. Resistance levels were the 30-day high of $2,567 and the upper Bollinger Band at $2,763. Support levels were the SMA20 at $2,360, the SMA50 at $2,078, and the SMA200 at $2,035.
Fear and Greed Index slips to 73
Data from Alternative.me showed the Fear and Greed Index at 73 for the day, still in the “Greed” zone and down 1 point from 74 a day earlier. Over the past eight days, the index has ranged between 62 and 74. That suggests sentiment has cooled from recent highs, though it has not shifted into panic.
Market focus turns to the $78,000 level
The report said the market is still digesting the policy uncertainty tied to the stronger labor data. Bitcoin’s ability to hold the $78,000 round-number level was identified as a key point to watch in the short term. If U.S. stocks remain weak and rate-hike expectations continue to rise, the crypto market could face more pullback pressure.