
Bitcoin is once again flirting with key resistance at $28,000 on Friday, as crypto and traditional markets rebounded from early losses caused by stronger-than-expected U.S. employment data.
The largest cryptocurrency by market capitalization slid to below $27,300 on news that the U.S. economy added 336,000 jobs in September, almost doubling the expectations of economists. The losses were short-lived, however, with bitcoin quickly rebounding to just above $28,000.
The price was below that level at press time, up 1.5% in the past 24 hours and slightly underperforming the broader cryptocurrency market proxy, the CoinDesk Market Index.
Besides, U.S. stocks recovered from sharp early losses, with the Nasdaq a 1.75% gain shortly before the close of Friday trade.
Ether halted its losing streak against BTC, outpacing the market and bouncing nearly 2%. The second-largest cryptocurrency was trading hands at $1,650 in the afternoon hours.
Avalanche's AVAX and Solana's SOL led the market rebound, gaining 6% and 3.8%, respectively.
Both the 200-day moving average and the 200-week moving average lie at around $28,000, acting as heavy resistance for any price increase, said Rachel Lin, CEO of derivatives decentralized exchange SynFutures.
On Friday, Lucas Outumuro, a head of research at IntoTheBlock, said bitcoin's bond market has been acting differently during the recent bond sell-off compared to last year.
Outumuro, a spokesman, said: 'It's a difficult situation,' he said.
When the Federal Reserve jacked up interest rates last year, the value of long-duration bonds tanked, putting pressure on risk assets like bitcoin. As the pace of rate hikes slowed and speculation began about a Fed pivot earlier this year, long-duration bonds and BTC rallied.
Now, the relationship between the two assets has reversed, with bitcoin peaking higher even as long-term bond prices crater.
The value proposition has been a key issue in the global economy due to global uncertainty, outumuro said.
Silberberg added that it was not clear whether he would be able to be a Nobel Prize winner.