Exactly one month ago, Bitcoin was trading below $20,000 per unit as crypto markets continued to react to rising inflation rates and central bank policies. However, a month later, the world’s leading crypto token surged above $23,000 despite consumer prices rising to multi-year highs. So, with that in mind, where could bitcoin potentially move in the next few weeks?
Current market status
july saw bitcoin (BTC) mostly consolidating between the $18,900 low and the $23,600 ceiling as volatility in crypto markets was higher in anticipation of a potential 75 basis point (bp) Fed hike.
Since then, the Federal Reserve has raised interest rates by 0.75% in July and August.
This came as inflation in the United States reached its highest level in more than four decades, as well as growing concerns about a looming global recession.
Despite this, bitcoin has quietly moved up as the uncertainty that has been plaguing the market has slowly begun to fade.
While worries about the extent of the recession remain, traders who were concerned about the Fed’s actions have received answers to some of these questions.
As a result, price strength in BTC it has mostly risen over the past few weeks, with the Relative Strength Index (RSI) rising from July 29 to 54.37.
At the time of writing this analysis, BTC/USD is currently trading at $23,019.32, just hours before the latest nonfarm payrolls report.
After worries about a potential slowdown in the US labor market, the number of jobs in July was 528,000 last month against an expected 250,000.
This could play a positive role for bitcoin bulls, who have been risk averse in recent months due to fears of a potential global recession amid the inflationary crisis.
While these concerns will continue, investors now have more reason to be optimistic as the market landscape slowly begins to change.
This week, gold rose to a one-month high against the dollar, while WTI fell to its lowest level since Russia’s invasion of Ukraine in February.
BTC there are now several major tests ahead in the coming weeks, the main one being whether it will have enough momentum to break the key and much higher ceiling of $24,700.
If he can do that, bitcoin could rise above $25,000 with bulls poised to approach $30,000 in September.
At what price do you think bitcoin will be trading in a month? Let us know your thoughts in the comments.
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Credit : news.bitcoin.com