• Bitcoin holds close to its yearly highs ahead of the July NFP report, and its bias remains bullish while the market holds above the rising trendline.
• The Non-Farm Payrolls (NFP) report is released on the first Friday of each month and directly impacts financial markets.
• With more institutional investors including Bitcoin in their portfolios, Bitcoin’s correlation with the dollar’s strength or weakness has increased.
Overview of July NFP Report
The Non-Farm Payrolls (NFP) report is released on the first Friday of each month and shows the change in the number of workers in the US economy – the largest economy in the world. Therefore, it directly impacts financial markets, including cryptocurrencies due to an increase in institutional investors investing in Bitcoin. As such, Bitcoin holds close to its yearly highs ahead of today’s NFP report while maintaining a bullish bias as long as it stays above the rising trendline that marks this year’s bull run.
Impact On Dollar Volatility
The release of today’s NFP report will cause fluctuations in the US dollar and have an impact on cryptocurrency markets. This year, we’ve seen a decline in dollars as shown by EUR/USD exchange rate reaching a new high for 2021 less than two weeks ago. Thus, if today’s report shows better-than-expected numbers then one can expect strength for US dollar which could lead to a test of trendline for Bitcoin prices. Conversely, if there are fewer jobs added than expected then we might see movement towards measured move target for possible bullish flag target at $35k for Bitcoin.
Technical Picture Favors More Upside For BTC
There are three reasons why technical picture favors more upside for BTC moving forward: Firstly since 2022 lows there has been formation of higher highs and higher lows reflecting bullish trends; Secondly bulls will keep buying dips as long as price action holds above upward trendline connecting lower highs; And lastly potential bullish flag has target set at $35k as indicated by its measured move.
Going into today’s July NFP report release one should be aware that volatility is likely to rise as economic news affects crypto markets too due to increasing institutional investments into bitcoin. Technical picture also favors more upside movement for BTC provided it keeps holding above rising trend line however it is important to pay attention to how US economy numbers turn out so you can make decisions accordingly regarding whether you should buy or sell bitcoin before next week’s NFP report update comes out..