Exactly a month ago today, Bitcoin traded below $20,000 per unit as the crypto markets continued to react to mounting inflation and central bank policies. However, a month later, the world’s leading crypto token has surged above $23,000 despite consumer prices rising to a decade high. So where could Bitcoin go in the next few weeks?
Current market status
In July, Bitcoin (BTC) mostly consolidated between a floor of $18,900 and a ceiling of $23,600 as volatility in the crypto markets was 75 basis points (bps) higher in anticipation of the Fed’s possible hike.
Since then, the Federal Reserve has hiked in consecutive meetings, raising interest rates by 0.75% in July and August.
This came as inflation in the United States rose to its highest level in over four decades and concerns mounted over an impending global recession.
Despite this, Bitcoin has been quietly moving higher as the uncertainty that has plagued and has plagued the market slowly eases.
Although concerns about the depth of a recession remain, traders concerned about the Fed’s actions have received answers to some of these questions.
As a result, BTC price strength has been rising for most of the past few weeks, with the Relative Strength Index (RSI) rising to 54.37 now, from reading 29 on July 5.
August outlook
At the time of writing, BTC/USD is currently trading at $23,019.32, just hours away from the latest non-farm payrolls report.
July payrolls came in at 528k last month versus 250k expectations amid concerns over a potential US job market slowdown.
This could bode well for bitcoin bulls, who have taken a risk-averse approach in recent months amid concerns over a possible global recession amid the inflationary crisis.
While these concerns will linger, investors now have more reason to be optimistic as the market landscape slowly begins to change.
BTC/USD chart
This week, gold rose to a monthly high against the dollar, while WTI crude fell to its lowest level since Russia’s invasion of Ukraine in February.
BTC now faces a couple of key tests in the coming weeks, with the main one being whether it has enough momentum to surpass an important and much higher ceiling of $24,700.
If it is able to, Bitcoin could race above $25,000 with bulls then positioned for a move closer to $30,000 in September.
tags in this story
Bear Rally, Bearish, Bitcoin, Bitcoin (BTC), BTC, Bull, Fed, Gold, Inflation Crisis, Investors, Job Report, Key Areas, Long-Term Outlook, Macro, Macro Events, Market Scenarios, Market Update, Rate Hikes, Risk Off Approach, RSI, Tests, Trading, WTI Crude Oil
What price do you expect bitcoin to trade at in a month? Let us know your thoughts in the comments.
Elijah Dambell
Eliman brings an eclectic perspective to market analysis, having worked as a broker director, retail educator, and market commentator for crypto, stocks, and forex.
Photo credits: Shutterstock, Pixabay, Wiki Commons
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