Volatile Week For Bitcoin And Crypto Ahead: Save These Dates
The Bitcoin and crypto market is experiencing a sharper correction since last Wednesday, shaking the bullish sentiment of the last few weeks. Although Bitcoin’s 1-week chart still looks very bullish, as long as the price remains above $25,000, the market is close to the critical area on the 1-day chart.
Any divergence below $26,800 could signify a trend change on a daily basis. On the upside, the $27,800 area is of key importance. If this level is breached, the uptrend could resume sooner than expected by the bears. In the coming week, various events and data could determine the direction of the trend.
This will be important for Bitcoin and Cryptocurrencies
Tomorrow, Tuesday, April 25, the Conference Board will publish the latest US Consumer Confidence figures for March at 10:00 am (EST). In the previous month, consumer confidence reached 104.2, well above expectations of 101.0.
In recent months, strong consumer data has been viewed positively by the cryptocurrency market. Therefore, a bump in expectations should have a slight positive impact on Bitcoin. Weak consumer confidence could be an indication of an impending recession and therefore signifies an ever-increasing correction in the cryptocurrency market.
On Thursday, April 27, US gross domestic product (GDP) numbers for the first quarter of trade in 2023 will be released in advance at 8:30 AM (EST). Recently, weak data has led to a price correction in both the stock market and the cryptocurrency market.
The initial estimate for GDP is 2.0%, well below the final figure for the fourth quarter of 2022 (2.6%). If the forecast is confirmed, the financial market should have a downward trend for fear of an approaching recession. Exceeding the estimate, on the other hand, could trigger bullish momentum for Bitcoin and cryptocurrencies.
However, the most important macro data point occurs at the end of the week. On Friday, April 28th at 8:30 am (EST), the Bureau of Economic Analysis will publish the top personal consumption expenditures (PCE) for March.
February core PCE was +0.3% monthly, below the +0.4% forecast. For March, analysts expect an unchanged +0.3% increase. On an annualized basis (YoY), the projection is for an increase of 4.5%, compared to 4.6% in the previous month (forecast: 4.7%)
If the core PCE turns higher, it will be bearish and likely to weigh on the cryptocurrency market. On the other hand, if core inflation increased less, as in the previous month, an upward reaction can be expected. The Bitcoin price is expected to benefit from the continued decline in inflation rates.
Meanwhile, crypto podcaster Tony Edwards has issued another warning. According to him, the biggest crypto critic in all of Washington DC, Elizabeth Warren, could introduce an anti-crypto bill that supposedly has no chance of success, but could still shock the market for now.
I was told corrupt @SenWarren will release a major anti-crypto bill soon. While I don’t think this is approved, it could affect the market. It could happen this week.
Keep fighting! contact their representatives, tweet, make content, etc.
— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) April 23, 2023
At press time, Bitcoin price was sitting at $27,669, struggling to break the resistance zone around $28,800.
BTC price, 4-hour chart | Source: BTCUSD at TradingView.com
Featured Image from iStock, chart from TradingView.com