The BTC Fear & Greed indicator is indicating an intense fear and bearish session

However, after finding support in the afternoon, Bitcoin rose to a late high of $17,200, and BTC broke through key resistance levels before pulling back through the third major resistance level (R3) at $17,061 to end the day at 16,968. dollars.

US economic indicators and the NASDAQ index provide support for BTC

It was a busy Friday session, as US economic indicators fueled demand for riskier assets. The December jobs report and the ISM Non-Manufacturing PMI eased the Fed’s hawkish bets.

In December, nonfarm payrolls increased by 223,000 compared to 256,000 in November, while wages grew at a slower pace of 0.3% compared to 0.4% in November. The unemployment rate in the United States decreased from 3.6% to 3.5%, and the labor force participation rate increased from 62.2% to 62.3%.

The ISM non-manufacturing PMI fell from 56.5 to 49.6, with the employment index falling from 51.5 to 49.8. Also favorable to the market was the decline in the price index from 70.0 to 67.6.

Markets responded to slowing wage growth and declines in the services sector, with the NASDAQ and S&P 500 seeing gains of 2.56% and 2.28%, respectively. According to FedWatchTool, the probability of a 25-point rate hike jumped from 58.1% to 75.7% on Friday.

FOMC member Bostic reportedly hinted at a 25 basis rate hike in February, supporting market sentiment against the Fed’s monetary policy.

Today, there are no statistics to provide direction, leaving BTC in the hands of cryptocurrency news and Fed policy forecasts. While easing bets on a 50 basis point rate hike is positive, fears of a US recession and the threat of cryptocurrency regulation remain a headwind.

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