Just a month ago today, Bitcoin was trading below $20,000 per unit as the cryptocurrency market continued to react to rising 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 price strength has mostly been on the rise over the past few weeks, with the Relative Strength Index (RSI) rising from 29 on July 5 to 54.37 now.
Outlook for August
At the time of writing this analysis, BTC/USD 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.
What price 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.
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