Just a month ago today, Bitcoin was trading below $20,000 per unit as the cryptocurrency market continued to react to inflation levels and central bank policies. A month later, however, the world’s leading crypto token has crossed $23,000 despite rising consumer prices to multi-decade highs. So, with that in mind, where might Bitcoin be headed in the coming weeks?

Current market conditions

In July, Bitcoin (BTC) was mostly consolidating between a floor of $18,900 and a ceiling of $23,600, amid higher volatility in crypto markets in anticipation of a possible 75 basis points (bps) rate hike from the Federal Reserve.

Since then, the Fed has raised interest rates continuously, raising interest rates by 0.75% in July and August.

That’s because U.S. inflation is at its highest level in more than 40 years, and fears of a looming global recession are growing.

Still, Bitcoin has quietly moved higher as the uncertainty plaguing the market has begun to slowly fade.

While worries about the depth of the recession remain, traders worried about what the Fed will do have seen some of those questions answered.

As a result, BTC’s strength has mostly been on the rise over the past few weeks, with the Relative Strength Index (RSI) from 29 on July 5 to 54.37 now.

Outlook for August

At the time of writing this analysis, BTC/ is currently trading at $23,019.32, just hours before the latest nonfarm payrolls report.

Payrolls came in at 528,000 last month, compared with expectations of 250,000, following concerns that the U.S. labor market may be slowing.

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That could be a positive for bitcoin bulls, who have taken a safe-haven approach in recent months amid fears of a possible global recession amid an inflationary crisis.

While these fears will persist, investors now have more reason to be bullish as the market landscape begins to slowly shift.

BTC/USD – Chart

Gold rose to a one-month high against the dollar this week, while WTI crude fell to its lowest point before Russia’s invasion of Ukraine in February.

BTC now faces some important tests in the coming weeks, the main one being whether it has enough momentum to surge towards the critical and higher ceiling of $24,700.

If this can be done, Bitcoin could break above $25,000 and then bulls will approach $30,000 in September.

tags in this story

bear market rally, bearish, bitcoin, bitcoin (BTC), BTC, bullish, Fed, gold, inflation crisis, investors, jobs report, key areas, long-term outlook, macro, macroeconomic events, market scenarios, market updates, plus Interest, Hedging Method, RSI, Testing, Trading, WTI Crude Oil

What do you expect Bitcoin to trade at in a month? Let us know your thoughts in the comments.

Eliman Dan Bell

Eliman brings an eclectic perspective to market analysis, having served as a brokerage director, retail trading educator and market commentator for cryptocurrencies, stocks and foreign exchange.

Image Source: Shutterstock, Pixabay, Wiki Commons

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