Bitcoin Price Prediction As US Income & Spending Data Is Released – Bear Market Coming To An End?
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The crypto market is anticipating the release of an important macroeconomic report that could dictate the direction of asset prices.
In light of this, what do analysts think and how could this affect the price of Bitcoin?
Bitcoin price action
Currently, the leading cryptocurrency is trading at $18,902, a downtrend of 5.76% in the last 24 hours. However, its weekly performance shows a loss of 0.50%.
Bitcoin’s performance has affected its technical characteristics. The asset is currently following its key moving averages (MA), although it is trading above the 10-day MA of $18,900. With the market in a bearish position, BTC is expected to slip below that line soon.
BTC’s moving average convergence divergence (MACD) is also negative, giving a sell signal. However, long-term investors can take solace in the asset’s relative strength index (RSI) of 45.21, which shows it remains underbought.
Dollar gains ground and drags Bitcoin down
The market’s current position appears to be driven by gains in the US dollar. The US dollar index (DXY) rose in the early hours on Wednesday, meaning the greenback has gained more momentum after falling on Tuesday.
The dollar’s gain has turned out to be crypto’s loss. The crypto market is down 5.09%, with a total market capitalization (TVL) of $921 billion.
Incoming income and consumption data
This week, the market is preparing for another macroeconomic report from the government. On Friday, the Bureau of Economic Analysis will release a report on personal income and spending that will reveal where and how inflation has affected spending.
In July, US personal spending rose just 0.1% month-over-month – compared to analysts’ expectations of 0.4%. It marked the weakest development so far this year, compared with an increase of 1% in June.
While consumption has remained robust despite the growing threat of inflation, the Federal Reserve’s recent rate hike of 0.75 basis points is expected to have a more pronounced effect on the calculation.
The consumer price index (CPI), which jumps higher than expected for August, should also spill over into consumer spending. If these indices come out higher than analysts expect, they could weigh on the dollar price and halt the recovery. And with the dollar moving in inverse correlation with Bitcoin right now, a drop in value could lead to Bitcoin’s price rise.
Tamadoge presents an opportunity to beat the trends
As things stand now, the market is in a very vulnerable position. Investors will be eagerly awaiting Friday’s release data, which could impact digital asset prices in the short term.
However, investors looking for long-term gains can find assets that have strong fundamentals at the moment. One such asset is TAMA. The coin is the platform token for Tamadoge – a blockchain gaming project that combines non-fungible tokens (NFT) and makes a game for the metaverse.
After a successful pre-sale where it earned $19 million in eight weeks, TAMA has now listed on the OKX exchange. In the last 24 hours, the asset has collected $4.36 million in trading volume, demonstrating massive investor demand.
This asset appears poised for a massive price increase and investors should remain interested.
