Bitcoin’s Short-Term Direction Hinges On This Week’s Labor Market Data Release

by

As a seasoned researcher with over two decades of market analysis under my belt, I have seen bull markets rise and bear markets fall. The recent surge of Bitcoin to the $70,000 mark is reminiscent of the dot-com bubble of the late 90s – it’s exhilarating but also a little nerve-wracking.

Bitcoin has been powering up significantly, reaching as high as $70,000. Yet, even with this newfound bullish energy, it’s crucial to keep an eye on some upcoming economic events that may impact Bitcoin’s near-term price trend.

Will Labor Market Data Release Signal Bitcoin’s Next Direction?

People who trade Bitcoin are closely watching its near-term price predictions, since important employment data from the U.S. is set to be released this week. If the data shows strength, it might trigger instability in the cryptocurrency market and broader financial markets.

According to Benjamin Cowen, the CEO of Into The Cryptoverse who is also a crypto analyst, the upcoming report, rich with details about employment rates and wage growth, could significantly influence Bitcoin’s short-term trajectory. This prediction by the expert is made as Bitcoin’s market control remains robust, moving ever closer to the crucial 60% threshold, beyond which market conditions might undergo significant changes.

As an analyst, based on Benjamin Cowen’s perspective, although Bitcoin’s current trajectory has been on point so far, it seems that after reaching the $68,000 mark, it might experience a slowdown in its upward momentum. A significant surge upwards could occur following this week’s labor market data release. Additionally, upcoming events such as the FOMC meeting and the US Presidential election are anticipated to have a substantial impact on Bitcoin’s price.

Cowen stated that according to the cyclical perspective, Bitcoin will increase during the last quarter of 2024, while the monetary policy perspective suggests its price could drop initially and then rise early in the following year. He commented that it was logical to bet against the cyclical view back in March, but now it’s uncertain which perspective will ultimately prove correct.

If Bitcoin manages to consistently surpass $70,000 rather than just briefly touching it, a financial expert suggests that the cyclical viewpoint is more probable. On the other hand, if Bitcoin struggles at the $70,000 level and starts to drop towards $64,000 again, the monetary perspective may win out, and the breakout might not occur until 2025.

If monetary perspective dominates, it’s possible that we might experience another short dip similar to the ones seen in April and August of this year, with an expected conclusion around December.

BTC’s Upside Pressure Continues

Recently, enthusiasm for Bitcoin has been increasing significantly, as it approaches the $71,000 threshold again – a value that hasn’t been reached since late June.

The persistent increase in Bitcoin’s value can be directly linked to the growing enthusiasm from bullish investors. Yesterday, we saw a surge of more than 3% in Bitcoin’s market capitalization and a significant jump of about 130% in its trading volume, which underscores strong confidence among both retail and institutional investors.

If the bulls successfully sustain this new upward trend, the cryptocurrency might see a prolonged surge past $71,000 and potentially even reach its previous peak of $73,000, which it hit back in March this year.

Read More

2024-10-29 21:11