Volatile week for Bitcoin and crypto ahead: Save these dates
A businessman consults a crystal ball to predict the future.
The Bitcoin and crypto markets have experienced a stronger correction since last Wednesday, rattling the bullish sentiment of recent weeks. While the 1-week chart for Bitcoin still looks very bullish as long as the price stays above $25,000, the market is close to the critical area of the 1-day chart.
Any deviation below $26,800 could signal a trend change on a daily basis. On the upside, the $27,800 area is of key importance. If this level is broken, the uptrend could resume sooner than expected by the bears. In the coming week, several events and data are in place that can determine a trend direction.
This will be important for Bitcoin and Crypto
Tomorrow, Tuesday, April 25, the Conference Board will release the latest US consumer confidence figures for March at 10:00 a.m. (EST). Last month, consumer confidence came in at 104.2, well above expectations of 101.0.
In recent months, strong consumer data has been viewed positively by the crypto market. Therefore, a blow to expectations should have a small positive impact on Bitcoin. Weak consumer confidence could be an indication of an impending recession and consequently mean an increasing correction in the crypto market.
On Thursday 27 April, US gross domestic product (GDP) figures for the first quarter of trade in 2023 will be published in advance at 8:30 a.m. (EST). Recently, the weak data led to a price correction in both the stock market and the crypto market.
The first estimate for GDP is 2.0%, well below final data for the fourth quarter of 2022 (2.6%). If the forecast is confirmed, the financial market will probably trend downward for fear of an approaching recession. Exceeding the estimate, on the other hand, could trigger bullish momentum for Bitcoin and crypto.
However, the most crucial macro data point will come at the end of the week. Friday 28 April at At 8:30 a.m. (EST), the Bureau of Economic Analysis will publish core personal consumption expenditures (PCE) for March.
February’s core PCE was +0.3% on a monthly basis, below the forecast of +0.4%. For March, analysts expect an unchanged increase of +0.3%. Year-on-year (YoY) growth is forecast at 4.5%, down from 4.6% last month (forecast: 4.7%).
If core PCE turns higher, it will be bearish and likely to weigh on the crypto market. On the other hand, if the core inflation rate rose less, as it did last month, a bullish reaction can be expected. The Bitcoin price is expected to benefit from continued falling inflation rates.
Meanwhile, crypto podcaster Tony Edwards issued another warning. According to him, the biggest crypto critic in all of Washington DC, Elizabeth Warren, may present an anti-crypto bill that supposedly has no chance of success, but may still shock the market for the time being.
I have been told corrupt @SenWarren will soon release a major anti-encryption bill. Although I don’t think it will be passed, it could affect the market. Could happen this week.
Keep fighting! contact your reps, tweet, create content, etc.
— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) 23 April 2023
At press time, the Bitcoin price stood at $27,669, struggling to break the resistance zone around $28,800.
BTC Price 4 Hour Chart | Source: BTCUSD on TradingView.com
Featured image from iStock, chart from TradingView.com
