Bitcoin (BTC) starts this week at $63,478, up from last week’s $58,898. Traders should monitor the next higher resistance levels at $65,452 and $70,299 while noting support levels at $62,453 and $60,029. These levels are crucial to anticipate potential price movements derived from Fibonacci indicators.
Market-Moving Events to Watch for This Week
- September 26: Durable Goods Orders (MoM) (August). The forecast for durable goods orders is a decline of 2.8%. This indicator is pivotal as it signals potential changes in economic momentum. A significant drop may reflect weakening economic conditions, which could lead investors to seek out risk assets like Bitcoin as a hedge. Conversely, a less severe decline might not sway market sentiment significantly.
- September 26: GDP (QoQ) (Q2). The GDP growth forecast for the second quarter is 3.0%. Strong economic growth can enhance risk-on sentiment, encouraging investment in assets like Bitcoin. However, rapid growth may also suggest impending tighter monetary policy, which could temper enthusiasm for cryptocurrencies as interest-bearing assets become more attractive. Investors will be assessing whether the growth pace will lead to changes in monetary policy that might affect Bitcoin demand.
- September 26: Fed Chair Powell Speech. The speech by Fed Chair Jerome Powell is a key event. His comments on inflation and interest rates will be closely watched for clues about the Fed’s future policy direction. A dovish tone may suggest a more accommodative monetary policy, boosting Bitcoin by increasing market liquidity and risk appetite. However, a hawkish stance, indicating a focus on curbing inflation, could strengthen the dollar and potentially reduce demand for Bitcoin as liquidity tightens.
- September 27: Core PCE Price Index (YoY and MoM) (August). The Core PCE Price Index, forecasted at 2.6% YoY and 0.2% MoM, is crucial as it is the Fed’s preferred inflation measure. Higher-than-expected figures may fuel expectations of future rate hikes, potentially pressuring Bitcoin prices as investors anticipate tighter financial conditions. Conversely, if the index trends lower, it might ease rate hike concerns, possibly supporting Bitcoin as market liquidity expectations improve.
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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.
