Bitcoin Battles $87K Resistance Amid Mixed US Jobs Data

Bitcoin Faces Resistance Near $87,000 Amid Mixed US Employment Data and Key Liquidity Zones

  • Bitcoin Price faced resistance near $87,000 as buyers and sellers contended over control during the Wall Street market open.
  • Order-book liquidity clusters around $85,000 and $87,000 influenced BTC price movements, with support near the 100-week simple moving average at $84,646.
  • US employment data released showed mixed signals with higher unemployment at 4.6% but job gains exceeding expectations in November.
  • Market observers noted large bid liquidity near $80,000 and sparse sell orders between $88,000 and $95,000, hinting at possible price movement if key resistances break.

Bitcoin (BTC) encountered notable resistance near $87,000 during the Tuesday open of Wall Street trading, amid reactions to mixed US employment reports. Buyers and sellers closely contested for dominance as they responded to conflicting data affecting market sentiment.

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Market data from Cointelegraph Markets Pro and TradingView displayed bulls struggling to overcome the resistance level above $87,000 after Bitcoin dipped to nearly $85,000 the day before. A trading tool, Material Indicators, highlighted a concentrated zone of bid liquidity around $85,000, providing support near the 100-week simple moving average (SMA) found at $84,646. At the same time, ask orders stacked above $87,000, creating a barrier to upward momentum, described as a battle unfolding in the order book as shared on X (formerly Twitter).

The 100-week SMA is a long-term average price line that traders use to identify major support levels. The tug-of-war around this line reflects cautious investor behavior ahead of significant economic data.

On the fundamental side, US labor market statistics released showed unemployment rose to 4.6%, the highest since late 2021, while job additions in November revealed about 14,000 more positions than expected. This mix offered a confusing outlook on economic strength, impacting risk assets including stocks, which sought recovery after early losses, with the S&P 500 aiming for gains as displayed on market charts.

Traders observed that Bitcoin price remained closely tied to these liquidity clusters. According to Crypto Tony on X, stronger market reactions might occur if Bitcoin falls closer to $84,000, where deeper liquidity resides. Another market participant, Kay, explained on X that previous price drops stemmed from different seller groups and suggested further declines might precede new rallies.

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Significant passive demand is noted on spot order books near $80,000, while some large sell orders appear at $88,000. Beyond that level, there is little resistance until $95,000, implying a possible upward move if sellers are absorbed, as shared by commentator Exitpump on X (see exitpump’s tweet).

The upcoming release of the Consumer Price Index (CPI) in late December is a major event expected to further influence Bitcoin and broader market dynamics.

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