This week holds significant implications for Bitcoin and the Dollar Index as US economic data is poised to influence both. The upcoming US Manufacturing Purchasing Managers’ Index (PMI) will be a crucial determinant of the dollar’s trend. A lower PMI reading could signal a weaker dollar, which might result in an uptick for Bitcoin (BTC) and other risky assets.
Bitcoin’s Recent Downturn
Over the past week, Bitcoin has seen a value drop of more than 10%, primarily due to the stabilization of the dollar index and Bitcoin’s muted response. The persistent two-month weakening of the dollar is now at a crossroads, contingent upon this week’s economic data releases. Should the dollar weaken further, it could create a favorable environment for cryptocurrencies and other risky assets. Access NEWSLINKER to get the latest technology news.
What to Expect from Friday’s Data?
Critical non-farm payroll data is set to be released this Friday, adding more weight to this week’s economic developments. ING analysts anticipate the unemployment rate to decrease to 4.2% with the addition of 165,000 new jobs. If these numbers fall short, the dollar could weaken further, presenting a potential opportunity for Bitcoin to gain.
User-Usable Inferences
– Monitor Tuesday’s PMI data; a weaker-than-expected PMI could weaken the dollar and boost Bitcoin.
– Pay attention to Friday’s non-farm payroll data; weaker job growth could also weaken the dollar.
– Be aware of the MACD indicator; it suggests a potential downtrend for Bitcoin to the $56,000 level.
– Stay updated on US economic data releases to anticipate market movements.
From a technical standpoint, Bitcoin must navigate this crucial period cautiously. The MACD indicator signals a strengthening downtrend, possibly driving Bitcoin down to the $56,000 mark. Investors should closely monitor forthcoming US economic data and exercise caution regarding potential market fluctuations.
This week’s US economic data will be vital in shaping Bitcoin’s near-term performance. A declining dollar could benefit risky assets, but market uncertainties and unexpected economic outcomes could lead to price volatility in Bitcoin.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/economic-data-affects-bitcoins-value