Bitcoin price recovers after weak U.S. jobs data eases pressure on risk assets

Bitcoin has rebounded from an intraday low near $61,500 after weaker-than-expected U.S. labor market data strengthened expectations that the Federal Reserve could still lower interest rates later this year.

According to data from crypto.news, Bitcoin (BTC) price traded at around $63,800 at press time on June 4, recovering from an intraday low near $61,550. Despite the rebound, the bellwether remained down roughly 5% over the previous 24 hours and nearly 22% below its May peak of around $82,000.

Fresh economic figures released by the U.S. Department of Labor appeared to improve sentiment across risk assets. Initial jobless claims for the week ended May 30 rose by 13,000 to 225,000, exceeding economists’ forecasts of 215,000. The previous week’s reading was also revised higher to 212,000.

Additional labor market data pointed to easing wage pressures. The Labor Department reported that final labor costs increased 1.8% during the first quarter, below the 2.5% estimate compiled by economists. Continuing jobless claims, meanwhile, fell by 8,000 to 1.777 million for the week ended May 23.

Market participants often view softer employment data as supportive of assets such as Bitcoin because it may give policymakers more room to cut interest rates if economic conditions weaken further.

Weak labor data revives Federal Reserve rate cut expectations

Following the latest employment figures, traders increased bets that the Federal Reserve could move toward monetary easing in the coming months if signs of economic slowing continue to emerge.

Lower interest rates generally improve liquidity conditions and reduce the appeal of fixed-income investments, making risk assets more attractive to investors. Bitcoin and other cryptocurrencies have historically benefited during periods when markets anticipate looser monetary policy.

Despite Thursday’s rebound, uncertainty surrounding the Fed’s next move remains elevated. Several analysts have recently warned that rising energy costs could complicate the central bank’s policy outlook.

Oil prices have climbed sharply following escalating tensions between the United States and Iran, raising concerns that inflation could remain stubbornly high. Some market commentators have argued that sustained increases in energy prices could force policymakers to maintain restrictive monetary conditions for longer than investors currently expect.

Bitcoin chart signals downside risks remain despite rebound

Technical indicators suggest the latest recovery may not be enough to fully reverse Bitcoin’s recent weakness.

On the daily chart, Bitcoin price has broken below the neckline of a bearish rounding-top formation that developed between April and early June. The breakdown occurred near the $65,000 area, a level that had previously acted as support throughout the pattern.

Momentum indicators also continue to favor sellers. The MACD remains below both the signal line and the zero level, while the histogram continues to print negative readings, indicating bearish momentum is still building.

At the same time, Bitcoin remains below the Supertrend indicator, which currently sits near $70,500 and continues to flash a sell signal. Chart data suggests the next major support zone is located around $60,000. A decisive break below that level could expose the asset to a deeper decline toward the high-$40,000 region, based on the measured target of the rounding-top pattern.

For now, traders appear focused on whether Bitcoin can reclaim the former neckline near $65,000, a move that could help stabilize price action after one of the sharpest crypto market sell-offs in recent weeks.