The price of Bitcoin (BTC) at the beginning of this week is $58,605. This marks a slight increase from last Monday’s price of $58,310. The next higher resistance levels are $59,748 and $62,166, while the next lower supports are $57,330 and $53,888.
Market-Moving Events to Watch for This Week
- August 20: Euro Area – CPI (YoY) (July) – Expected value 2.6%. A reading above 2.6% may push the European Central Bank to slow down its interest rate cut strategy. This could hurt the crypto market as tighter monetary policies are less favorable for cryptocurrencies. If inflation runs hotter than expected, the ECB might be forced to adopt a more hawkish stance. This could lead to a stronger euro and a potential decline in Bitcoin prices as investors seek safer assets amidst tightening financial conditions.
- August 21: USA – FOMC Minutes. Investors will scrutinize the FOMC minutes for signs of imminent rate cuts. Indications of future rate cuts could be good for the crypto market, as lower interest rates often drive investors towards alternative assets like Bitcoin. The minutes will be key in understanding the Federal Reserve’s outlook on inflation and economic growth. Any hint of dovishness could propel Bitcoin prices higher, as the prospect of cheaper borrowing costs encourages risk-taking in the market. Also, any mention of the potential impact of digital currencies on the US economy could provide a boost to Bitcoin’s mainstream adoption.
- August 22: USA – Initial Jobless Claims. A weaker than expected job market may prompt the Federal Reserve to cut interest rates sooner. However, if the reading is too weak, it may increase recession fears, which could negatively impact the market, including crypto. A delicate balance is needed; modestly higher claims might be seen as a sign that the economy is cooling enough to warrant a rate cut, boosting Bitcoin. On the other hand, significantly higher claims could spook the market, leading to a broader sell-off that includes cryptocurrencies. Furthermore, a stronger job market might reduce the chances of rate cuts, which could result in a short-term drop in Bitcoin prices.
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Disclaimer
It’s important to note that the information provided is not intended as financial advice. The views expressed here solely represent the writer’s opinion based on the outlined market events. As with any investment, conduct thorough research and consider personal circumstances before making decisions in the volatile world of cryptocurrencies.
