The US crypto market and stock futures are down after the May jobs report, which showed the economy creating more jobs than expected. Bitcoin failed to overcome the $31.000 resistance and dropped back near the $30.500 resistance. At the time of publication of this article, BTC is trading close to $29.400.
The S&P 500 dropped 1,4%, while the Dow Jones Industrial Average lost nearly 300 points, or 0,9%. The Nasdaq Composite was down 1,9%.
In this article, we will discuss:
US creates 390 jobs in May
Here are the key metrics, compared to consensus estimates compiled by Bloomberg:
- Non-Agricultural Payrolls: +390.000 vs. +318.000 expected
- Unemployment rate: 3,6% vs. 3,5% expected
- Average earnings per hour, month over month: 0,3% vs. +0,4% expected
- Average earnings per hour, year over year: 5,2% vs. +5,2% expected
The U.S. economy added 390.000 jobs in May after a downwardly revised gain of 405.000 in April, knocking down earlier consensus expectations that called for a 325.000 job increase, a sign that the labor market remains tight and that the Federal Reserve to cool the economy are still not bearing fruit.
Despite solid gains in the payroll, the unemployment rate at 3,6%, but the culprit was an increase in the participation rate, which rose from 62,2% to 62,3% as more people returned to work. workforce attracted by better-paying opportunities and perhaps by the rising cost of living.
In any case, today's robust job numbers show that extreme pessimism may not be fully justified at this point, although it is important to note that unemployment is a lagged indicator that does not capture the most recent economic developments.
Looking ahead, traders should continue to monitor labor market dynamics, keeping in mind that the US consumer is the backbone of the economy, accounting for about two-thirds of GDP. If hiring conditions deteriorate, household spending could weaken dramatically, a situation that would spell trouble for the outlook.
Bitcoin price
O bitcoin price faced difficulties trying to overcome resistance near $30.500, as a result of which BTC initiated a downside correction and traded below the $30.000 level. The bears are strong and can push the bitcoin price below the $29.500 support. If BTC dips below $29.500 the key support is near the $28.500 zone where buying force has been predominant.
Bulls need to take BTC above $30.500 for a retry bullish attempt in the short term, in which case the next resistance is near $31.200. A show of strength above $31.200 could see the price rally towards the $32.000 resistance.
Ethereum Price
Following Bitcoin, Ethereum initiated a downside correction and traded below the $1.800 level and approached the $1.730 level. ETH's next major support is near the $1.700 level, if the bears succeed the price could test $1.650.
The bulls need to take the ETH price to the next resistance near the $1.820 level. The main resistance is near $1.850, a show of buying strength could see the cryptocurrency rally to $1.920.
