Bitcoin (BTC) Price Watch: Will Unemployment Data Impact BTC Next Week?

January 31, 2025 by Arslan Tabish

• Bitcoin’s future hinges on next week’s labor data, with unemployment rate possibly determining BTC’s short-term direction.
• Cowen warns that a higher unemployment rate could increase volatility, while a lower rate might push Bitcoin prices lower.
• BTC price faces critical support at $100,000, with $90,000 as the next key level; failure to hold could signal further decline.

Bitcoin traders are preparing for next week as it may turn out to be significant for the BTC as the labor market data will be released. Benjamin Cowen also weighed in on his analysis and highlighted the fact that unemployment rate might be a key deciding factor for the BTC value. If unemployment maintains a rate of 4.1% to 4.2%, Cowen believes that the market can achieve a similar performance to the one observed in February and early March of this year.

Labor Data’s Influence on Bitcoin

However, the probability of a higher unemployment rate is not desirable since this could bring more volatility into the Bitcoin market. Cowen also states that if the figure is too high, it may make volatile BTC’s further action indistinct. On the other hand, lower unemployment rate might lead to more yields in the market thus exerting a bearish pressure to bitcoin prices. Labour weekly for the next week will be vital to determine the direction of the asset in the short-run.

The cryptocurrency touched the 50-day Exponential Moving Average earlier during the week at $98,845. This support level assisted Bitcoin to get back on the uptrend again and has appreciated to $104,700 after recording a 2.69% increase on Thursday. As of press time, BTC is trading at $104,268, showing a 0.80% decrease over the past day.

Source: TradingView

RSI, MACD, and Bitcoin Outlook

If BTC falls to below $100,000 and remains there for some time in the year, it should be taken to mean developing a deeper drop. The primary level of demand for BTC is at $90,000. If this level is not managed to hold, the price may further decline to the next level. The psychology of traders’ behavior is likely to be sensitive to these moves, especially if daily price falls below 50-day EMA.

The Relative Strength Index (RSI) is at 57, nevertheless still above the central line of 50, but I can notice a decrease in the values. A dwindishing of the RSI could then depict that the upward trend in the price is weakening. Also, the Moving Average Convergence Divergence (MACD) is in a confused state of whether to go with a bearish crossover.

However, if Bitcoin starts to recover further then it might reach yet another high of $109,588 as observed on the 20 of January. A move above this level will now be seen as an indication that the bullish trend is back in force. However, if the market conditions do not improve, it can define the future of Bitcoin for years – it can stagnate, or even drop.

In the coming days, thus, the future of bitcoin will go with or against the external economic factors which will prevail in the market. Thus, the information about the labor market next week can become the basis for a bullish impulse or a new avulsion of BTC prices. The investors therefore wait for what will happen next.

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