Traders may adopt a risk-off approach with several macroeconomic reports set to be published throughout the week. After a notable 10.37% rally over the past seven days, BTC is likely to experience a period of range-bound trading. Strong demand from spot purchasers, including Strategy’s spot BTC ETFs and announcements from 21Shares and Coinbase, has contributed to Bitcoin’s rise to $95,700. However, aside from the significant $1.42 billion BTC purchase announcement by Strategy on April 28, a relatively quiet week in crypto news may lead to decreased spot demand and further pressure on Bitcoin’s support levels.
This week is packed with macroeconomic data releases. On April 29, the Job Openings and Labor Turnover Survey (JOLTS) will be published, offering insights into how the ongoing US trade war and tariffs are impacting the labor market.
US Core PCE Price Index (MoM). Source: Investing.com
On Friday, May 2, the jobs report will be released, and due to recent tariff-related volatility, it may indicate a significant slowdown in the economy. The Core PCE (Personal Consumption Expenditures) forecast is set for April 30, which will provide a clearer picture of any substantial shifts in US inflation.
The ISM Manufacturing PMI data will be available on May 1. Recent reports have reflected the anxiety businesses are experiencing due to the trade war, leading them to pause their planning as they assess the situation. Should the report indicate further deterioration in the ISM PMI, it may lead to negative market reactions.
US ISM Manufacturing PMI. Source: MacroMicro.me
Traders typically adjust their risk exposure during busy weeks of macroeconomic data. Given the market volatility observed throughout April, it is likely that traders will adopt a cautious stance, supporting the view that Bitcoin prices may consolidate during the week.
Understanding the Context
Bitcoin has been known for its volatility, often responding sharply to macroeconomic news. The Core PCE index, a crucial measure of inflation, is closely watched by market participants and can significantly influence investor sentiment. A higher-than-expected reading may lead to concerns about rising inflation, prompting fluctuations in cryptocurrency prices.
Upcoming Reports
- Core PCE Index: This report is vital for understanding inflation trends. A rise in the index could impact Federal Reserve policy, potentially affecting interest rates and, consequently, Bitcoin’s price.
- Manufacturing Data: The manufacturing sector is a key indicator of economic health. Strong performance can signal economic growth, which may boost risk appetite among investors, including those in the crypto market.
- Jobs Report: Employment figures provide insight into the labor market’s strength. A robust jobs report could enhance investor confidence, while weak data might lead to caution, influencing Bitcoin’s trajectory.
Market Sentiment
Market analysts suggest that the convergence of these reports could lead to a period of consolidation for Bitcoin prices. Traders often adopt a wait-and-see approach ahead of significant economic announcements, leading to reduced trading volumes and narrower price ranges.
Understanding the Context
Bitcoin has been known for its volatility, often responding sharply to macroeconomic news. The Core PCE index, a crucial measure of inflation, is closely watched by market participants and can significantly influence investor sentiment. A higher-than-expected reading may lead to concerns about rising inflation, prompting fluctuations in cryptocurrency prices.
Upcoming Reports
- Core PCE Index: This report is vital for understanding inflation trends. A rise in the index could impact Federal Reserve policy, potentially affecting interest rates and, consequently, Bitcoin’s price.
- Manufacturing Data: The manufacturing sector is a key indicator of economic health. Strong performance can signal economic growth, which may boost risk appetite among investors, including those in the crypto market.
- Jobs Report: Employment figures provide insight into the labor market’s strength. A robust jobs report could enhance investor confidence, while weak data might lead to caution, influencing Bitcoin’s trajectory.
Market Sentiment
Market analysts suggest that the convergence of these reports could lead to a period of consolidation for Bitcoin prices. Traders often adopt a wait-and-see approach ahead of significant economic announcements, leading to reduced trading volumes and narrower price ranges.
As of now, Bitcoin is trading slightly below $95,000, having established a tight range between $93,000 and $95,500 since reaching this level on April 25.
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Source: Cointelegraph Edited: Bernie Sly