Bitcoin Drops 3% as U.S. Jobs Report Boosts Bond Yields

Bitcoin experienced a significant pullback over the weekend, falling from its high above $97,000 on Friday to below $95,000 on Monday. This decline was driven by a strong U.S. jobs report, which showed non-farm payrolls grew by 177,000 in April, slightly above expectations. The positive jobs data initially boosted market sentiment but quickly shifted as bond yields climbed back above 4.3%, indicating that borrowing costs might remain elevated for a longer period. This shift in sentiment led to a roughly 3% drop in Bitcoin's price from its Friday peak, with the cryptocurrency finding temporary support around the $93,570 level before attempting a modest recovery.

Trading data indicates that Bitcoin has established a resistance level near $95,250, with a bearish trend line forming on hourly charts. The cryptocurrency is now trading below both the $96,000 level and the 100-hour Simple Moving Average, key technical indicators that traders closely monitor. This movement aligns with broader market trends, as Bitcoin's price action has increasingly correlated with traditional financial markets. The weekend sell-off in Bitcoin mirrored declines across risk assets, including a sharp drop in oil prices after OPEC+ announced accelerated production increases, adding 411,000 barrels per day to global supply in June. Meanwhile, gold prices climbed above $3,250 per ounce as traders sought safe havens amid renewed uncertainty.

Geopolitical tensions also contributed to the market's cautious sentiment. Comments from President Donald Trump about seeking "a fair deal" with China added to the market's sensitivity to global trade relations. U.S. equity futures, including S&P 500 E-mini contracts, pointed lower on Monday morning, reflecting the defensive shift across markets that also affected Bitcoin's price action.

From a technical perspective, Bitcoin faces immediate resistance near $94,500, with a more substantial barrier at the $95,250 level. Should the price break above $95,750, it could potentially test the $96,800 resistance before challenging the $98,000 mark again. On the downside, Bitcoin has established support near $94,000, with major support at $93,500. If these levels fail to hold, further declines could take the price toward $92,500, with the main support sitting at $91,200. Technical indicators show the hourly MACD losing momentum in the bearish zone, while the Relative Strength Index (RSI) has fallen below the 50 level, suggesting moderately bearish short-term sentiment.

The next major price catalyst for Bitcoin will likely be the Federal Reserve’s policy decision on Wednesday. Traders are closely watching whether Chair Jerome Powell will resist calls for rate cuts or adopt a more balanced approach given mixed signals from inflation and employment data. For now, Bitcoin remains in a consolidation phase, having retraced from its recent attempt to break the $98,000 level. The short-term direction will depend on whether bulls can regain control above the $95,250 resistance or if bears push the price below the current support zone at $93,500. The most recent price data shows Bitcoin attempting to recover from the $93,570 low, with buyers showing interest near this support level.