• The July NFP report is due today and it will directly impact the financial markets, including cryptocurrencies.
• The bias for Bitcoin remains bullish while the market holds above the rising trendline.
• If the US economy adds fewer jobs than expected, Bitcoin could go for its measured move in the days to come.
The Impact of the July NFP Report
The Non-Farm Payrolls (NFP) report is released on the first Friday of each month and shows the change in employment in the US economy – which is the largest economy in the world. As such, this economic report has an immediate impact on financial markets, including cryptocurrencies like Bitcoin.
Bitcoin’s Bias Ahead of NFP Release
Since more institutional investors are now including Bitcoin in their portfolios, there is an increased correlation between its value and dollar strength or weakness. The current situation ahead of this month’s NFP report sees Bitcoin holding close to its yearly highs and a bias that remains bullish while it stays above a rising trendline.
Technical Picture Favors More Upside
When looking at technical analysis, there are three reasons why it favors more upside for Bitcoin after today’s announcement; Firstly, since 2022 lows, Bitcoin has formed a series of higher highs and higher lows – typically indicative of a bullish trend; secondly, one can properly identify this trend by connecting lower highs as long as prices remain above; thirdly, a possible bearish flag formation has a target price of $35k for Bitcoin according to its measured move.
NFP Could Make or Break Trend
Today’s NFP report could be what makes or breaks this current technical trend – if it announces better-than-expected news then we may see some testing of that upward trendline as dollar strengthens; conversely if job numbers are less than expected then we may witness Bitcoin going for that measured move mentioned earlier within days following announcement.
In conclusion, today’s release will be closely watched by all participants across financial markets – especially those involved with cryptocurrencies such as Bitcoin – given its recent performance relative to other currencies and its strong correlation with US economic data releases like these ones from NFP reports each month.