Exactly one month ago today, Bitcoin was trading below $20,000 per unit as crypto markets continued to respond to rising levels of inflation and central bank policy. However, a month later, the world’s leading crypto token rose above $23,000, even as consumer prices rose to multi-decade highs. So with this in mind, where could Bitcoin potentially be headed in the next few weeks?
Current market condition
Bitcoin (BTC) mostly consolidated between the ceiling of $18,900 and $23,600 in July as volatility in crypto markets remained high in anticipation of a potential 75 basis point (bps) hike by the Fed.
Since then, the Federal Reserve has hiked in back-to-back sessions, raising interest rates by 0.75% in July and August.
It comes as inflation in the United States moves to its highest level in four decades and with growing concerns about a global recession.
Despite this, Bitcoin has quietly moved higher as the uncertainty plaguing the market has slowly begun to fade.
While concerns remain about the scale of the recession, traders concerned about the Fed’s course of action have seen some of these questions answered.
As a result, price strength in BTC has largely risen over the past few weeks, with the Relative Strength Index (RSI) now tracking at 54.37 from a reading of 29 on July 5.
At the time of writing this analysis, BTC/USD is currently trading at $23,019.32, just hours removed from the latest non-farm payrolls report.
July payrolls came in at 528,000 last month, beating expectations by 250,000, following concerns of a potential slowdown in the US labor market.
This bodes well for bitcoin bulls, who have taken a risk-off approach in recent months on concerns about a potential global recession amid an inflationary crisis.
Although these concerns persist, investors now have more reasons to be bullish as the market landscape slowly begins to change.
Gold rose to a one-month high against the dollar this week, while WTI crude fell to its lowest level since Russia’s invasion of Ukraine in February.
BTC now faces some key tests in the coming weeks, the main one being if it has enough momentum to cross a key and higher ceiling of $24,700.
If able to do so, Bitcoin could race above $25,000, followed by bulls positioned closer to $30,000 in September.
What price do you expect Bitcoin to trade at in a month’s time? Let us know your thoughts in the comments.
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