Bitcoin price struggled to hold an advance above $77,000 on September 17 after U.S. initial jobless claims fell to 196,000. The stronger labor reading came one day after the Federal Reserve raised interest rates and signaled that inflation still requires tighter policy.
The Labor Department reported that claims dropped by 10,000 in the week ending September 12. The previous reading stood at 206,000. The four-week moving average also declined to 203,250.Â
How Do Strong Labor Data and Fed Policy Affect Bitcoin Price?Â
Initial claims track new applications for unemployment benefits and offer an early view of layoffs. The latest figure was the lowest since mid-July. However, weekly data can fluctuate around holidays, including Labor Day.
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The announcement came after the policy meeting of the Federal Reserve on September 16. The Federal Open Market Committee increased its target range by 25 basis points to 3.75% – 4.00%. All twelve voting members agreed on the interest rate hike.
According to the Fed, economic activity kept growing at a strong rate. Consumption in the country was robust, along with investments. Inflation was also elevated.
Why Do Jobless Claims Matter for Bitcoin Price?
Recent labor figures give the Fed another clue as to how rising rates have been impacting employment. With fewer layoffs, there is less indication of labor market weakness. This leaves inflation and growth as the key concerns for the policy decisions in the pipeline.
Rates rising also influence the Bitcoin price through financial conditions in general. Government bond yields become more attractive when monetary policy remains accommodative. Costs also go up for leveraging trading and business operations.
According to the recent Fed forecasts, the federal funds rate is expected to average 4.1% by the end of 2026. This is higher than the present range of 3.75%–4.00% and indicates future tightening along the projected policy path by participants.
However, this does not mean that the Fed intends to hike rates again. Participants give their forecasts based on expectations about the economy, not commitments for future decisions.
Bitcoin Gives Back Early Advance
The Bitcoin price today initially gained about 1.50% and reached roughly $77,130 after the jobless claims release. The move later faded. BTC subsequently traded near $76,501, according to the CoinMarketCap data.
That reversal followed several volatile sessions. Bitcoin reached about $79,800 on September 11 before falling to $74,944 on September 15. It later recovered into the mid-$76,000 range.
Technical readings showed weak short-term momentum. Bitcoin remained below its 20-day simple moving average near $78,104. The four-hour relative strength index stayed below the neutral 50 level, while Chaikin Money Flow stood in negative territory.
The Bitcoin price also remained between two closely watched liquidity areas. A downside concentration sat near $74,600, while an upside zone appeared around $77,700. Neither area had produced a confirmed breakout.
U.S. regulatory developments added another event for crypto markets to track. The Senate failed to invoke cloture on the motion to proceed with H.R. 3633, the Digital Asset Market Clarity Act, on September 15. The vote ended 49-50, below the 60 votes required.
What Levels Matter Next for Bitcoin Price?
In an X post, analyst Michael van de Poppe pinpointed $77,500 as the first significant resistance point for the Bitcoin price after it bounced off from $75,584. In addition, he highlighted a range between $80,500 and $81,200 as the second resistance point.
A breakout above $77,500 would put the Bitcoin price on track to approach its 20-day moving average of $78,104. The failure of this recovery attempt will keep focus on the previous support of $75,584 and the bigger liquidity region around $74,600.
Another analyst, Ted, also highlighted the zone above $82,000 as the higher-high point. This point is still higher than the other two resistance regions and has not been tested yet in the current recovery.
At this moment, the Bitcoin price is trading below its first resistance point amid a situation of better labor data along with the shift in rate by the Federal Reserve.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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