23. Juli 2024

Should You Buy or Sell Bitcoin Before the July NFP Report?

  • July NFP Report: The July Non-Farm Payrolls (NFP) report is due today, and the US dollar’s volatility is set to increase. Bitcoin holds close to its yearly highs with a bullish bias as the market holds above the rising trendline.
  • Impact on Bitcoin: Bitcoin’s correlation with the dollar’s strength or weakness has increased since more institutional investors included it in their portfolios. Therefore, today’s NFP report can make or break the trend for Bitcoin.
  • Technical Picture: The technical picture favors more upside for Bitcoin as since 2022 lows, it formed a series of higher highs and lower lows. A possible bullish flag also indicates a target of $35k for Bitcoin.

Overview of July NFP Report

The July Non-Farm Payrolls (NFP) report is released on the first Friday of each month, showing the change in the number of workers in the US economy – the largest economy in the world. Because of this, financial markets are greatly impacted by this economic report as its release causes great volatility in the US dollar. This affects even cryptocurrency markets as more institutional investors have been including Bitcoin in their portfolios. This year, we have seen that when the dollar weakens so does Bitcoin. As such, before today’s release of the NFP report, we see that Bitcoin holds close to its yearly highs and that there is a bullish bias while it continues to hold above its rising trendline.

Impact on Cryptocurrency Markets

The correlation between Dollar strength/weakness and Bitcoin has grown stronger ever since institutional investors began investing into cryptocurrencies. Today’s reading from this economic report can either make or break trends for cryptocurrencies like Bitcoin as well as other digital assets too.

Technical Analysis Picture

From looking at technical analysis charts we can see that there are three main reasons why there is still potential for further gains in prices for Bitcoin despite it holding near yearly highs ahead of today’s NFP reports release – First, since 2022 lows BTC has formed a series of higher highs and lower lows which typically suggests a bullish trend; second if you connect these lower highs then you will be able to identify what could be classified as an upwards trend line; thirdly – there is also what looks like a possible ‚bullish flag‘ formation which indicates that should this breakout occur then BTC could reach targets up to around $35k!