Bitcoin price rose 2 percent after the U.S. Bureau of Labor Statistics released its September nonfarm payrolls report on Friday. A key on-chain indicator shows that BTC is in the prime position for bullish price action in the coming weeks. Bitcoin price is headed to reclaim $28,000 as markets react positively to the latest US Labor market report. Can bullish/whale investors take advantage of the positive news to reclaim the $30,000 zone? Here are the details…
Bitcoin price moved up with non-farm employment data
On October 6, the U.S. Bureau of Labor Statistics released its latest nonfarm payroll figures for September 2023. As seen in the chart below, records show nonfarm employment increased by 336,000. According to TradingEconomics, markets had priced in a consensus expectation of 170,000. Nonfarm Payrolls (NFP) data is a closely watched economic indicator in the United States and can impact various financial markets, including Bitcoin. Generally, a better-than-expected NFP report indicates a strong job market and improving economic health. The fact that the latest NFP report beats last month’s figures by 48% could boost the confidence of major Bitcoin investors in the US and beyond.
Whales at Coinbase are piling into Bitcoin
The NFP report appears to have increased institutional investors’ confidence in Bitcoin. As an indication of this, a vital on-chain indicator shows that US-based crypto whales have started to increase buying pressure this week. CryptoQuant’s Coinbase Premium Index shows the percentage difference between Bitcoin prices on Binance and Coinbase Pro spot trading platforms. As shown below, the BTC Coinbase Premium Index is trending positive for the best of this week. As of October 6, it is at the level of 0.92.
Binance, in particular, is the dominant player globally in BTC retail trading. Meanwhile, trading activity on Coinbase Pro is largely dominated by US-based institutions and high-net-worth investors looking to trade in a regulated environment. Therefore, when the Bitcoin Coinbase Premium Index enters positive values, spot prices on Coinbase marginally exceed Binance. This means that US investors have increased their buying pressure.
Historically, the chart above shows that the BTC price often rises in the days after BTC Coinbase Premium breaks into positive values. Recently, this phenomenon was observed on August 29 and September 20, respectively. Either way, the Bitcoin price made noticeable gains within days after crypto whales trading on Coinbase Pro began moving the needle. However, it remains to be seen whether BTC retail market participants will catch the whales’ positive trend in the coming days.
BTC prediction: Is $30,000 coming?
The above-mentioned on-chain indicator establishes a close correlation between the Bitcoin price and the trading activities of US-based whale investors. Hence, BTC bulls may take advantage of this to steer the ongoing price rally towards $30,000, according to analyst Ibrahim Ajibade. Global In/Out of Money Around Price (GIOM) data, which shows the entry price distribution of current Bitcoin investors, also supports this prediction. According to the analyst, if Bitcoin bulls can overcome the first sell wall at $29,300, the BTC price rally could reach $30,000.
As shown above, 3.1 million addresses purchased 1.6 million Bitcoin at an average price of $29,300. If they take profits early, they may unintentionally trigger an early pullback. However, if the decline in whales’ confidence affects retail traders as predicted, Bitcoin price could rise towards the $30,000 range. Still, the bears could invalidate this bullish forecast if BTC price breaks below $25,000. However, the chart shows that 635,000 addresses purchased 2.42 million Bitcoins at a maximum price of $26,613. If they HODL, this can create a significant support wall.
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