The bitcoin and cryptocurrency market has seen a stronger correction since last Wednesday, which has fueled the bullish sentiments of the past few weeks. While the Bitcoin 1-week chart still looks very bullish as long as the price stays above $25,000, the market is near the critical area on the 1-day chart.
Any divergence below $26,800 could mean a change in direction on a daily basis. On the upside, the $27,800 area is of key importance. If this level is breached, the uptrend may resume sooner than expected by the bears. In the coming week, there are many events and data that can determine the direction of the trend.
This will be important for Bitcoin and Crypto
Tomorrow, Tuesday, April 25th, the Conference Board will release the latest US Consumer Confidence numbers for March at 10:00 AM (EST). In the previous month, Consumer Confidence came in at 104.2, well above expectations of 101.0.
In recent months, strong consumer data has been viewed positively by the cryptocurrency market. Therefore, beating expectations should have a slight positive effect on bitcoin. Weakening consumer confidence could be an indication of an impending recession and thus mean a widening correction in the cryptocurrency market.
On Thursday, April 27, US GDP numbers for the first quarter of commerce in 2023 will be released in advance at 8:30 a.m. (EST). Recently, the weak data has led to a price correction in both the stock market and the crypto market.
The preliminary estimate for GDP is 2.0%, which is significantly lower than the final data for the fourth quarter of 2022 (2.6%). If the forecast is confirmed, the financial market is likely to turn bearish, fearing an impending recession. On the other hand, an overshoot of appreciation could lead to bullish momentum for Bitcoin and the cryptocurrency.
However, the most important macro data point comes at the end of the week. On Friday, April 28 at 8:30 a.m. (EST), the Bureau of Economic Analysis will Publish Core personal consumption expenditures (PCE) for the month of March.
Core PCE for February was +0.3% m/m, below expectations of +0.4%. For the month of March, analysts expect a steady rise of 0.3%. YoY (YoY) forecasts are for an increase of 4.5%, down from 4.6% last month (Forecast: 4.7%)
If the underlying PCE turns out to be higher, it will be bearish and will likely affect the crypto market. On the other hand, if the core inflation rate increases less, as in the previous month, an upward reaction can be expected. Bitcoin price is expected to benefit from continued low inflation rates.
Meanwhile, Tony Edwards, the podcaster responsible for publishing the podcast, issued another warning. According to him, Washington D.C.’s top cryptocurrency critic, Elizabeth Warren, could introduce an anti-crypto bill that supposedly has no chance of success, but could still shock the market right now.
I have been told rotten @employee A big anti-crypto bill is coming soon. Although I don’t think it will be overtaken, it could affect the market. It could happen this week.
Keep fighting! Contact your reps, tweet, create content etc.
– Tony Edward (Thinking Crypto Podcast) (ThinkingCrypto1) April 23, 2023
At press time, bitcoin price is at $27,669 and is struggling to break the resistance area around $28,800.
BTC price, 4-hour chart | source: BTCUSD on TradingView.com
Featured image from iStock, chart from TradingView.com
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