Bitcoin bulls buy the dip but can BTC secure a daily close above $112K?

Crypto Market on Edge Ahead of Key US Economic Data

The entire crypto market, led by Bitcoin (BTC), is in a state of high alert as traders and investors anxiously await the release of the United States jobs report. While recent price action has been choppy, underlying data suggests that bullish investors are using this period of uncertainty as a buying opportunity. However, the critical question remains: do they have enough momentum to push Bitcoin past a key resistance level?

Bitcoin’s price has been a tale of two tapes this week. A promising rally on Wednesday saw BTC touch $112,600, only to be firmly rejected by sellers during the Asian trading session. The downward pressure continued into Thursday, pushing the price back down to $109,329 and trapping it in a tight range.

Why the US Jobs Report Matters for Bitcoin

The recent market jitters were amplified by weak private hiring data. The ADP report showed only 54,000 jobs were added in August, falling significantly short of the 75,000 anticipated by analysts. This has set a nervous tone for Friday’s more comprehensive U.S. jobs report, which will provide a clearer picture of the economy’s health.

So, why does a traditional economic indicator have such a strong influence on a decentralized asset like Bitcoin? It all comes down to the U.S. Federal Reserve and its monetary policy.

• Interest Rate Expectations: A weak labor market is often a signal for the Federal Reserve to stimulate the economy by cutting interest rates. Lower rates can devalue the U.S. dollar and encourage investors to move capital into risk-on assets, including stocks and cryptocurrencies like Bitcoin.
• Market Sentiment: According to the CME Group’s FedWatch tool, the market is pricing in a 97.6% probability of a 25-basis-point rate cut in the Fed’s upcoming September meeting. Many traders are banking on this move to fuel the next leg up for BTC.

Essentially, bad news for the U.S. economy could be interpreted as good news for Bitcoin, as it increases the likelihood of more accommodating monetary policies.

Dip Buyers Emerge as Whales Accumulate

Despite the macroeconomic uncertainty, on-chain and market data reveal a bullish undercurrent. Data from analytics platform Hyblock shows that both retail and institutional-sized investors are actively accumulating Bitcoin in the spot markets, a classic “buy the dip” scenario.

This accumulation is happening even as the price remains tightly range-bound. The BTC/USDT liquidation heatmap confirms this, showing a dense concentration of activity between $109,000 and $111,200. This indicates that while long-term holders are buying, short-term traders are taking profits near the top of this range, preventing a significant breakout for now.

The Path Forward: Key Levels to Watch

All eyes are now on Bitcoin’s ability to reclaim and hold a critical price level. The market is watching to see if BTC can secure a daily close above <$112K>. A successful close above this psychological and technical barrier could invalidate the recent bearish pressure and signal a continuation of the uptrend.

On the other hand, failure to break out could see the price test lower supports. The immediate support lies around the $109,000 mark. If that level breaks, a further drop toward $108,000 is a distinct possibility as sellers gain control.

In conclusion, the Bitcoin market is at a pivotal crossroads. Bullish dip-buyers are showing strength at current levels, but their conviction will be tested by the macroeconomic data from the U.S. jobs report. The outcome will likely determine whether BTC breaks out to new highs or revisits lower support levels in the days to come.