Investing.com - Bitcoin underwent a sharp correction on Friday, falling from a high of around $72,000 (£ 56,707) to a low of $68,450 (£ 53,911), due to an NFP report on US job creation that largely upended expectations of Fed rate cuts.
Job creation was well above consensus, and average hourly earnings rose more than expected, which was greeted as a surprise given that other employment indicators had been more disappointing in previous days.
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Against this backdrop, most risk assets, including Bitcoin, posted heavy losses, and the cryptocurrency settled for a very slight rebound over the weekend, settling at $69,750 (£ 54,935) this Monday morning.
In terms of upcoming events that could boost Bitcoin's volatility, it's worth remembering that the Fed is meeting this week and will deliver its conclusions on Wednesday evening. No rate decisions are expected, but the central bank's forecasts and comments will be analysed for clues as to whether rate cuts are on the cards.
From a chart point of view, we would stress that there are reasons to hope for a rebound, as BTC/USD is in contact with an uptrend line that has been stretching since the low of 1 May.
A break below last week's low would be evidence of a break of the trend line and would put the next support point at $66,500/67,000 in sight (£ 52,375/£ 52,769).
On the upside, the $70,000 threshold is an immediate obstacle, before more significant resistance at $72,000 (£ 56,700).
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