• The July NFP report is due today, and the US dollar’s volatility is set to increase. Bitcoin holds close to its yearly highs and the bias for it remains bullish.
• Technical indicators favor more upside for Bitcoin as long as the price action holds above a rising trendline.
• A better-than-expected NFP report could test the trendline, while a weaker one could trigger Bitcoin’s bullish flag’s measured move of $35k.
Overview of July NFP Report
The Non-Farm Payrolls (NFP) report is released on the first Friday of each month and shows the change in number of workers in the US economy – the largest economy in the world. The number directly impacts financial markets, including cryptocurrency market participants, as it affects dollar strength or weakness.
Bitcoin Price Movement Ahead of July NFP Report
The US dollar has seen a decline this year resulting in Bitcoin holding close to its yearly highs ahead of this months NFP report release. Additionally, technical indicators show bullish sentiment for Bitcoin with it holding above an upward trendline that marks this year’s bullish trend.
Bullish Bias: Reasons For Upside Potential
There are three reasons why there may be an upside potential for Bitcoin during this time; firstly since 2022 lows, there has been a formation of higher highs and higher lows which indicates a bullish trend; secondly connecting lower highs properly identifies this trend; thirdly a possible bullish flag has a target for $35k making it possible that if today’s NFP report exceeds expectations then we may see Bitcoin reach this price point in upcoming days.
Impact Of Today’s Report On The Market
Today’s NFP report will have an impact on how markets react regarding Bitcoin as when it is better than expected then traders can expect an increase in dollar strength which may result in testing of the upward trend line whereas if results are worse than expected then we may see movement towards reaching that $35k target from earlier mentioned bullish flag pattern..
Conclusion
The July NFP report will have an impact on how financial markets react where cryptocurrency market participants will be interested in trading off this information. Technical indicators show positive signs for Bitcoin with further potential upsides if today’s release exceeds expectation however any worse than expected results will lead to volatility within markets and should be watched closely by investors.