Bitcoin Eyes Potential Rebound Amid US Jobs Data and Order-Book Liquidity Signals

Key Points

1. Bitcoin struggles to hold above $116,000 despite US jobs data indicating labor market weakness, fueling hopes for a potential short squeeze and dip-buying.

2. July nonfarm payrolls report showed only 73,000 new jobs, well below the 100,000 forecast, increasing optimism for a rate-cut-driven rally in Bitcoin.

3. Order-book liquidity suggests a potential short squeeze near the $120,000 level, with dip-buying activity observed on exchanges like Bitfinex.

4. Market participants are watching for a sustained breakout above $116,000 to confirm bullish momentum, with significant short liquidity near $120,000 offering a potential sharp price move.

5. Federal Reserve policy remains pivotal, with market expectations shifting toward a rate cut in September, which could enhance Bitcoin's appeal as a hedge.