Exactly one month ago today, bitcoin was trading below $20,000 per unit as crypto markets continued to react to rising levels of inflation and central bank policies. But a month later, the world’s leading crypto token is hovering above $23,000, even as consumer prices have risen to multi-decade highs. So with this in mind, where could bitcoin be headed in the coming weeks?
Current Market Conditions
Bitcoin (BTC) in Julyconsolidated nearly between a floor of $18,900 and a ceiling of $23,600 as crypto market volatility increased in anticipation of a possible Fed 75 basis point (bps) hike
The Federal Reserve then increased interest rates in July and August by 0.75%, in quick succession.
This was done as U.S. inflation reached its highest level in over 40 years and global recessionary concerns grew.
Despite this, bitcoin has quietly risen, as the uncertainty that had plagued the market has slowly begun to fade.
Traders who were concerned about the course of action the Fed would take now see some of these questions resolved, although concerns about the size of the recession remain.
As a result, the price strength ofBTChas risen little in the past few weeks, with the Relative Strength Index (RSI) now tracking at 54.37, up from a reading of 29 on July 5.
August Outlook
At the time of writing this analysis,. BTC/USD is currently trading at $23,019.32, just hours from the latest nonfarm payrolls report.
After fears of a potential slowdown in the U.S. labor market, the number of jobs in July last month came in at 528,000 versus the 250,000 expected.
This could act as a positive for bitcoin bulls, who have taken a risk-off approach in recent months, with concerns over a potential global recession amid an inflation crisis.
These concerns will continue, but investors now have more reason to be bullish as the market landscape begins to slowly change.
Gold hit a one-month high against the dollar this week, while WTI crude oil hit its lowest level since before Russia invaded Ukraine in February.
BTCfaces several important tests in the coming weeks, the main one being whether there is enough momentum to surge past the critical and much higher ceiling of $24,700.
If it can do so, bitcoin could race past $25,000 and the bulls could be positioned to approach $30,000 in September.
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