Bitcoin’s value continues to fluctuate around the $29,000 mark, drawing significant interest from traders and investors.
Currently priced at $29,216 with a daily trading volume of $12.4 billion, Bitcoin’s movements are under strict scrutiny from those active in the market.
Additionally, there’s considerable anticipation surrounding the forthcoming US Non-Farm Payrolls (NFP) data. This information could potentially have a substantial influence on Bitcoin’s future direction.
Let’s delve into a prediction of Bitcoin’s price and analyze the possible impact of the NFP statistics on the cryptocurrency market.
USD Strengthens Ahead of Anticipated Non-Farm Employment Data Release
In anticipation of the Non-Farm Employment data set for release on Friday, the USD has displayed signs of resilience.
This optimistic stance stems from the projected figures for July, with the market predicting a drop of 6K jobs from the previous month, which would take the total to approximately 203K.
Furthermore, the Average Hourly Earnings for July are anticipated to come in at 0.3%, marking a minor decline from June’s 0.4%. In general, the market is hoping for a report that exceeds average expectations.
Surprising Numbers Lead to Changes in Market Pricing
The latest surge in Bitcoin’s value is largely attributed to its robust performance on the Cash App platform operated by Block.
Despite experiencing a slight dip in Bitcoin profits compared to Q1 2023, they still outperform the previous year’s profits by 7%.
Block Inc., a company specializing in payment technology, reported notable Q2 results, including a 34% year-over-year jump in Bitcoin revenue, amounting to $29,216.
During their Q2 earnings announcement, the company disclosed a remarkable $2.4 billion in Bitcoin sales on the Cash App. This resulted in a gross profit of $44 million, marking a 7% increase from the preceding year.
Interestingly, Bitcoin sales accounted for nearly half of Block’s total Q2 revenue of $5.53 billion, which signifies a 25.6% YoY rise.
This increase is credited to customers’ persistence in acquiring the cryptocurrency, even in the face of its year-long price depreciation.
Investors’ Drive Surge in Cryptocurrency Purchases
The recent rise in Bitcoin’s price may be partially attributed to Binance’s recent introduction of new trading pairs and a zero-fee trading program.
Under the Zero-Fee Bitcoin Trading Program, users can now trade Bitcoin/First Digital USD (BTC/FDUSD) and Ether/First Digital USD (ETH/FDUSD) pairs without incurring any maker or taker fees.
Additionally, the presence of the First Digital USD (FDUSD) stablecoin on Binance broadens the range of trading alternatives.
It’s vital to point out that the relatively low market cap of $257 million for FDUSD has raised caution among some investors regarding its potential impact on the market.
However, its listing on Binance might lead to an increase in its market cap. Binance’s move comes in the wake of recent adjustments to its fee structure, which have influenced market share and trading volumes.
Bitcoin Price Prediction
A thorough examination of Bitcoin’s recent market activity, using a 4-hour timeframe, indicates a restricted trading bracket.
In this timeframe, the digital currency met resistance around the $30,000 mark, while establishing a support level near the $29,000 threshold.
Currently, key technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) suggest a downward trend for Bitcoin.
A glance at the Bitcoin price chart on Tradingview reveals that the digital asset has been on a downtrend, hitting the $29,100 level.
This falling trend could potentially persist, driving Bitcoin’s price down to approximately $28,700. However, it’s plausible that Bitcoin could find support around the $28,700 mark amid this continuing decline.
Should it breach this support level, the next targeted threshold could potentially be set at $28,200.
