Bitcoin has seen a significant rebound over the weekend, nearing $64,000, after the release of positive jobs data in the United States. As of 10:30 a.m. on Monday, Hong Kong time, Bitcoin's price was recorded at $63,905, reflecting a 3.06% increase in the past 24 hours.
The recovery began after the US announced its monthly jobs report on Friday, revealing 254,000 jobs added in September, surpassing Dow Jones' forecast of 150,000. Analyst Min Jung from Presto Research commented, "There is increased optimism for a soft landing, suggesting that the US economy is currently in a ‘Goldilocks’ state."
Rachel Lucas, a crypto analyst at BTCMarkets, noted that the improving market sentiment and expectations of a potential US Federal Reserve rate cut in November have driven increased liquidity in the market. The CME Group’s FedWatch Tool currently indicates a 97.9% chance of the Fed lowering rates to between 4.50% and 4.75%. Lucas stated, "[This] typically fosters a more risk-on attitude among investors, benefiting assets like Bitcoin."
Another crucial factor contributing to Bitcoin's recent rally is the decrease in Bitcoin held on centralized exchanges, which often correlates with bullish price movements due to reduced selling pressure.
Lucas emphasized that to maintain this recovery, Bitcoin needs to break and hold the key resistance level at $64,500. If successful, a retest of $66,000 could be on the horizon. However, both Lucas and Jung pointed out that geopolitical tensions in the Middle East pose a significant risk to the sustainability of Bitcoin's recent gains.
Despite a slow start in October, a historically strong month for Bitcoin, analysts remain optimistic that recovery may accelerate as the month progresses.
