$BTC Bitcoin saw a notable recovery on Wednesday after buyers managed to defend the critical support level at $85,000, with the price rising from $85,427 to $87,918 before slightly retreating and settling at $87,305 at the time of writing.

The recovery came after the release of the U.S. jobs data for November, which surpassed expectations, showing an increase of 64,000 non-farm jobs, exceeding the forecast of 45,000, while the unemployment rate rose to 4.6%, the highest since September 2021.

The data highlighted a contradictory scenario: strong labor market conditions may give the Federal Reserve more leeway to focus on inflation, while rising unemployment suggests that the central bank may introduce further interest rate cuts to support the economy, which typically encourages an increase in Bitcoin and major cryptocurrencies' prices.

The digital currency also benefited from a wave of short position liquidations, with CoinGlass data showing $38 million worth of short positions liquidated in 24 hours, compared to $23.5 million for long positions, unexpectedly boosting buying pressure in the market #BTCVSGOLD