Key points:

• US private-sector jobs numbers declined more than 4% in June — the biggest drop since March 2023.

• Bitcoin sees relief, building on a rebound which has begun to trap late short positions.

• $108,000 remains a near-term BTC price resistance level.

Bitcoin BTCUSD touched $108,000 at the July 2 Wall Street open as a major miss in US employment sparked volatility.

Bitcoin rebounds amid US labor market weakness

Data from Cointelegraph Markets Pro and TradingView showed BTCUSD up 2% on the day at the time of writing.

Gains accompanied a surprise retraction in private-sector payrolls data, which came in 33,000 lower in June to hit its lowest level since March 2023. Estimates from management firm Automatic Data Processing (ADP), which compiled the data in its National Employment Report, had seen an increase of nearly 100,000.

“Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,” ADP chief economist Nela Richardson commented in an accompanying press release.

“Still, the slowdown in hiring has yet to disrupt pay growth.”

Ahead of US nonfarm payrolls data, due for release on July 3, crypto market commentators were optimistic. Labor market weakness, they noted, increased the odds of Federal Reserve interest-rate cuts coming sooner rather than later — a key source of liquidity injections for Bitcoin, altcoins and risk assets.

“Fed rate cuts are becoming increasingly likely in July…,” Andre Dragosch, European Head of Research at crypto asset manager Bitwise, wrote in part of a response on X.

As Cointelegraph continues to report, Fed officials’ resistance to rate cuts has spawned pushback from Washington, including from US President Donald Trump, who this week demanded that rates fall to 1% or lower.

The latest data from CME Group’s FedWatch Tool shows market sentiment unchanged by the ADP numbers, with the Fed’s September meeting still the favorite for the next cut being unveiled.

BTC price passes key level for “upward pull”

Among traders, attention once again focused on exchange order-book liquidity.

The push to $108,000, data from monitoring resource CoinGlass revealed, had begun to liquidate a large cloud of short positions.

Before the event, popular X commentator TheKingfisher had described $108,000 as one of several “magnets” surrounding spot price.

“Below current price, long liquidations are notably lighter until the 104000-105000 range, showcasing a clear imbalance. This setup implies a stronger upward pull if price breaks above 107k,” he told X followers.

Popular analyst Matthew Hyland described the week’s BTC price action so far as a “liquidity grab,” with shorts now paying the price.

Despite growing predictions of new all-time highs coming in July, $108,000 continues to function as a local resistance level for BTCUSD.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.