Bitcoin (BTC) experienced a rally, reaching $112,900 during Friday’s European trading session, fueled by cautious optimism among traders awaiting the release of critical employment figures from the United States.

Bitcoin Bulls Aim to Establish support at $112,000 After Price Rebound

Bitcoin bulls are attempting to solidify key resistance levels as new support zones, according to market data. This includes the $111,500-$113,000 range, which represents a important area of demand liquidity.

Liquidity data indicated that the price has absorbed some of this liquidity, with further levels extending up to $115,000.

The recent price movement in Bitcoin resulted in the liquidation of $14.32 million worth of short BTC positions within a single hour.

Analyst Skew noted that Bitcoin’s price “bounced very well thanks to a decent supply depth (market demand) and 100 million dollars were repurchased,” adding:

“In perpetual contracts, we have a clear rotation outside the short positions and coverage for an crucial day for NFPs, in which the majority awaits new advances towards type cuts.”

SKEW emphasized that for the upward momentum to be confirmed, the price needs to demonstrate “strength and demand” above critical levels.

Michael Van de Poppe, founder of Mn Capital, identified $112,000 as a potential entry point for long traders.

Another analyst known as X stated that exceeding $112,000 would present “another great long opportunity,” predicting:

“We are going to have an upward break.”

Trader Rekt Capital highlighted $113,000 as the level to reclaim to “fully confirm the break” and increase the likelihood of a sustained rally.

Reportedly, buyers have been actively accumulating and opening leveraged positions during Bitcoin’s recent dip below $110,000, but a decisive break and close above $112,000 remains crucial.

“The United States now has more unemployed than available jobs,”

Traders Await US Employment Data

The market’s attention is focused on the impending release of the US Employment Report. The Kobeissi Letter, a capital markets commentator, suggested that a “contraction of the labor market could not be ruled out.”

A weaker-than-expected employment report could signal a slowdown in the labor market, increasing pressure on the Federal Reserve to cut interest rates.

This could potentially lead to expectations of a rate cut between 25 and 50 basis points, as the Fed prioritizes supporting employment amid cooling economic growth.

The Kobeissi Letter stated, “The United States now has more unemployed than available jobs,” adding:

“In two weeks, the Fed will lower the types and ‘blame it’ to the collapse of the labor market.”

Market participants are currently pricing in a 99.4% probability that the FED will reduce rates by 25 basis points at its September meeting, a move anticipated by many traders to potentially trigger a trend reversal in the price of BTC, according to the Fedwatch Tool of CME Group.