Bitcoin experienced a notable decline to fresh local lows this week, pressured by unexpectedly robust U.S. employment figures that bolstered the dollar to a three-week peak. The leading cryptocurrency joined traditional assets including equities and gold in what market analysts described as a long-anticipated corrective phase.
The stronger-than-forecast jobs data reinforced expectations that the Federal Reserve may maintain a restrictive monetary policy for longer, consequently driving capital toward the U.S. dollar. This dynamic created headwinds for dollar-denominated assets like Bitcoin, triggering a sell-off from recent highs.
Despite the short-term downturn, several prominent technical analysts suggest the pullback is a healthy consolidation within a broader bullish trend. They point to key support levels holding firm and anticipate an imminent retest of the $110,000 price target once the current macroeconomic pressure subsides. Market sentiment remains cautiously optimistic, with on-chain data indicating accumulation by long-term holders during the dip.
The correlation with traditional markets underscores Bitcoin’s growing integration into the global financial landscape. This synchronized movement highlights the asset’s continued sensitivity to macroeconomic indicators and central bank policy, even as it matures. The current correction is viewed by many institutional observers as a necessary recalibration, potentially setting the stage for the next significant upward leg.
