As Bitcoin (BTC) turns green for the month, investors and traders are speculating whether the bear market is finally over. The world’s largest cryptocurrency by market capitalization has been downward since reaching an all-time high of $64,863.10 in April 2021. But now, BTC is showing some signs of life. In this article, we will explore Bitcoin price predictions and analyze the factors driving the recent positive momentum, assessing if this marks the end of the prolonged bearish trend.
The US Dollar (USD) experienced significant changes in key economic indicators, and these strong economic indicators for the US Dollar could impact Bitcoin’s price. The Average Hourly Earnings saw a month-over-month increase of 0.5%, surpassing the previous value of 0.3% and exceeding expectations of 0.3%. Additionally, the Non-Farm Employment Change demonstrated a positive change, with 253,000 jobs created, exceeding the forecasted figure of 181,000 and the previous value of 165,000. Furthermore, the Unemployment Rate dropped to 3.4%, lower than the expected 3.6% and the prior figure of 3.5%.
A stronger US Dollar might decrease demand for Bitcoin and other cryptocurrencies, potentially resulting in downward pressure on their prices. However, despite these indicators, BTC/USD is trading at 29,454, experiencing a nearly 2.5% increase on Friday. Amid the ongoing banking crisis, Bitcoin edges closer to the $30,000 mark.
The recent price surge is attributed to market tensions arising from concerns about banks. On the four-hour chart, Bitcoin remains above the 50-day exponential moving average, a vital support level of around $28,700. This level has been a significant resistance for BTC throughout the week. However, closing candles above $28,700 increases BTC’s likelihood of a bullish rebound.
Bitcoin may encounter immediate support near the 27,600 level, as indicated by a trendline on the 4-hour chart. Should the price break through this critical 27,600 level, BTC could reach the next support level at 27,200. On the other hand, if BTC succeeds in breaking above the $29,600 level, we can see its price moving upward toward $30,400.
In conclusion, Bitcoin’s price shows signs of life, and the recent positive momentum has many investors and traders speculating about whether the bear market is finally over. However, the impact of the USD’s solid economic indicators cannot be ignored, and investors should keep a close eye on these factors when making trading decisions. Nevertheless, with BTC edging closer to the $30,000 mark, we might be witnessing the start of a new bullish trend for the world’s largest cryptocurrency.
