As the Bitcoin market continues to display massive volatility near the $27K level, investors are awaiting a bullish surprise to ride on a short-term uptrend. The U.S. unemployment rate recently broke the expected 3.5%, creating a favorable position for Bitcoin’s upward trajectory. Additionally, the recent rise in the debt ceiling is building a bullish positive momentum for BTC price, leaving investors waiting for a solid trend.
Bitcoin Experiences Bullish Scenario
The U.S. unemployment rate recently broke the expected 3.5%, coming in at 3.7%. While this slight increase may initially seem concerning, it’s important to delve deeper into the data. The May non-farm payrolls, a key indicator of job growth, were projected at 190,000 but instead came in at a whopping +339,000. This robust and resilient job market paints a picture of an economy that is bouncing back stronger than expected.
According to a recent analysis by QCP Capital, clarity has emerged in the macroeconomic landscape following a compromise on the Debt Ceiling by U.S. political figures. This event had previously been a source of uncertainty, causing unrest in the financial sector.
This heightened uncertainty was a significant factor in the observed decrease in volatility and the stagnant trend in risk-on assets like Bitcoin. Drawing parallels to 2020, QCP Capital suggests that Bitcoin is on a similar path, mirroring the period of uncertainty in both the macroeconomic scene and the crypto market after a prolonged dormant phase.
The cryptocurrency experienced a significant drop and remained stable for the year, mirroring Bitcoin’s 2020 behavior, as shown in the chart. Bitcoin later trended upwards in 2020. QCP Capital predicts a similar pattern for BTC, anticipating a break from the stable price action soon.
What’s Next For BTC Price?
BitMEX co-founder Arthur Hayes argues that Bitcoin’s price and inflation will increase together due to aggressive central bank policies, a view that contradicts the modern monetary theory.
BTC’s price is currently facing a hurdle to hold its momentum near the $27K price level. After forming a Doji candle near $27,200, the BTC price faced sharp selling pressure, forcing it to drop below the 23.6% Fib level.
However, Bitcoin is showing a reversal from its downtrend, suggesting that sellers remain active at key resistance levels. The nearly flat 20-day EMA of $27,106 and the RSI just below the midpoint don’t clearly favor either buyers or sellers. If the price stays below the 20-day EMA, BTC could fall to the $26,650 support level.
The $24,000 to $25,300 range is expected to be strongly defended by buyers, as a break could lead to a sharp drop to $20,000.
For a new upward trend, buyers need to overcome the resistance line at $28K. This could initially push the BTC price to $30,000 and then to $31,000.
