• The July NFP report is due today and the US dollar’s volatility is set to increase as Bitcoin holds close to its yearly highs.
• The bias for Bitcoin remains bullish while the market holds above the rising trendline.
• On a better-than-expected report, Bitcoin might test the trendline as the dollar should strengthen, while if the US economy adds fewer jobs than expected, Bitcoin could go for the bullish flag’s measured move in days to come.
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 US economy – largest economy in world. This economic report directly impacts financial markets, including cryptocurrency market participants interested in trading it.
US Dollar & Bitcoin’s Correlation
Since more institutional investors included Bitcoin in their portfolios, its correlation with strength or weakness of dollar has increased. Dollar declined this year, as reflected by EUR/USD exchange rate reaching new high less than two weeks ago; thus, it’s unsurprising that BTC holds close to its yearly highs ahead of July NFP report. Bias remains bullish while holding above upward trendline marking 2023 bullish trend.
Technical Picture Favors More Upside
Since 2022 lows, BTC formed series of higher highs and higher lows – typical formation during bull trends; therefore bias remains bullish while price action holds above it. Possible bullish flag (marked blue on chart) has target of $35k for BTC as indicated by measured move.
What Can We Expect?
Today’s NFP report can make or break trend: with better-than-expected report, BTC might test trendline with dollar strengthening; however if US economy adds fewer jobs than expected, BTC could go for measured move within days.
Bitcoin’s correlation with US dollar increases since inclusion in institutional investors‘ portfolios; technical picture favors more upside as long as price action holds above upward trendline; today’s NFP report can either make or break this bull trend – depending on whether there are more or fewer jobs added than expected.