Bitcoin’s Short-Term Direction Hinges On This Week’s Labor Market Data Release

Bitcoin is showing strong upward movement, surging all the way to the $70,000 price level. However, despite the renewed bullish momentum, there are several upcoming macro events to watch out for that could influence the price trajectory of BTC in the short term.

Will Labor Market Data Release Signal Bitcoin’s Next Direction?

Market participants are curiously monitoring Bitcoin’s short-term price forecast as they anticipate the publication of the key United States labor market data this week. A stronger data release could cause turbulence in the crypto landscape and the financial markets.

Crypto analyst and Chief Executive Officer (CEO) of Into The Cryptoverse, Benjamin Cowen, claims the report, which will offer information on job levels and wage growth, is expected to have a significant impact on Bitcoin’s near-term direction. The expert’s prognosis comes as BTC’s market dominance holds strong, drawing closer to the critical 60% threshold, where market conditions may change drastically.

According to Benjamin Cowen, while the current view has proved accurate so far, Bitcoin, after rallying to the $68,000 level, would essentially lose some of its momentum and only make a new major move upward following the labor market data release this week. Results from other upcoming events, like the FOMC meeting and the US Presidential election, are also expected to influence the price of the crypto asset.

Cowen highlighted that the cyclical view of BTC predicts that it will rise in the fourth quarter of 2024, whereas the monetary policy view claims the asset’s price is set for a decline followed by an increase in early next year. “While it made sense to fade the cyclical view back in March, it is more of a toss-up now between which view prevails,” Cowen added.

In the event that Bitcoin can rise above $70,000 on more than just a wick, the expert believes the cyclical outlook is more likely to prevail. However, should BTC fail at the $70,000 mark once again and begin to fall back toward $64,000, the monetary perspective will likely turn out victorious and the breakout will not take place until 2025.

Once the monetary view prevails, there may be another brief decline akin to what happened in April and August this year, which would probably end in December.

BTC’s Upside Pressure Continues

The positive sentiment around BTC lately is growing stronger as the flagship crypto asset is a few figures away from reaching the $71,000 mark once more, a level not seen since late June.

This sustained upside momentum is solely attributed to the rising interest of bulls. In the past day, Bitcoin’s market cap and trading volume have risen by over 3% and 130%, respectively, demonstrating a robust attitude among retail and institutional investors.

As long as the bulls manage to maintain this renewed uptrend, the crypto asset could witness an extended push beyond $71,000 and possibly to its current all-time high of $73,000, achieved in March this year.

Featured image from Unsplash, chart from Tradingview.com