Veröffentlicht von Summary of the Article
- The July Non-Farm Payrolls (NFP) report is released on the first Friday of each month and directly impacts financial markets.
- The dollar’s volatility is set to increase as Bitcoin holds close to its yearly highs while remaining in a bullish trend.
- The technical picture favors more upside for Bitcoin with a possible target of $35k for Bitcoin.
What is the NFP Report?
The Non-Farm Payrolls (NFP) report is released on the first Friday of each month. It shows the change in the number of workers in the US economy – the largest economy in the world. Because of that, the economic report directly impacts financial markets. The dollar fluctuates widely on the NFP report’s release, and even cryptocurrency market participants are interested in trading it.
How Does it Affect Bitcoin?
Bitcoin’s correlation with the dollar’s strength or weakness has increased since more institutional investors included it in their portfolios. This year, as reflected by EUR/USD exchange rate reaching a new high for this year, dollar has declined significantly which also helped push bitcoin higher towards its yearly highs ahead of today’s July NFP report. The bias for bitcoin remains bullish while holding above its rising trendline.
Technical Picture Favors More Upside
The technical picture favors more upside for Bitcoin for at least three reasons: formation of higher highs and higher lows typically reflects a bullish trend; bulls will keep buying dips as long as price action holds above upward trendline; and a possible bullish flag has a target of $35k for Bitcoin indicated by its measured move. Therefore, today’s NFP report result could make or break this trend.
Conclusion
In conclusion, today’s July NFP report could potentially have an impact on both US Dollar and bitcoin if it comes out better than expected then there could be some volatility which might lead to testing of trendlines but if it falls short then there might be further room for bitcoin to test its measured move targets provided by bullish flags on other hand if USD strengthens then bictoin might struggle to remain close to its YTD highs