• The US Non-Farm Payrolls (NFP) report is due today and the dollar’s volatility is set to increase.
• Bitcoin holds close to its yearly highs, with a bullish bias as it holds above the upward trendline that marks the 2023 bullish trend.
• The NFP report can either break or make the trend, depending on whether it shows better-than-expected results or not.
Overview of July NFP Report
The US Non-Farm Payrolls (NFP) report is released on the first Friday of each month and it shows the change in the number of workers in the US economy – the largest economy in the world. As such, it has an impact on financial markets, including cryptocurrency. Bitcoin’s correlation with the dollar’s strength or weakness increases as more institutional investors include it in their portfolios.
Bitcoin’s Preceding Price Action
Bitcoin holds close to its yearly highs ahead of this July NFP report due to a declining US dollar as reflected by EUR/USD exchange rate reaching a new high for the year less than two weeks ago. Currently, there is a strong bullish bias as Bitcoin holds above its rising trendline marking this year’s bull run.
Technical Outlook
The technical picture favors more upside for Bitcoin for at least three reasons; it has formed higher highs and higher lows since 2021 lows; one can properly identify its current bullish trend by connecting lower highs; and lastly, there is a possible bullish flag pattern that has a target of $35k if fulfilled according to its measured move.
Impact of July NFP Report
Today’s NFP report will be crucial for determining whether Bitcoin will test its current trendline or reach $35k according to its possible bullish flag pattern’s measured move. On better-than-expected results from today’s report, Bitcoin might test this trendline as the dollar should strengthen while on worse than expected results, Bitcoin might go for $35k instead.
Conclusion
The July NFP report is set to have an impact on financial markets including cryptocurrencies like Bitcoin which currently trades close to its yearly highs while holding above a positive upward trendline indicating a strong bull market bias towards further growth potential if today’s NFP yields better than expected results leading up towards testing this trendline or even reaching $35k according to one possible pattern’s measured move if results are worse than expected instead .
