• The July NFP report is a key economic indicator that influences all financial markets, including the cryptocurrency market.
• Bitcoin is currently holding close to its yearly highs, and the bias remains bullish as long as the price action holds above an upward trendline.
• If today’s NFP report shows better-than-expected results, Bitcoin may test the trendline; otherwise, it might go for a possible bullish flag’s measured move in the days to come.
Impact of Non-Farm Payrolls (NFP) Report
The Non-Farm Payrolls (NFP) report is released on the first Friday of each month and shows the change in the number of workers in the US economy. This important economic report directly affects financial markets and causes volatility in currencies like US dollar. As more institutional investors have included Bitcoin in their portfolios, there has been an increasing correlation between Bitcoin and US dollar’s strength or weakness.
Technical Picture Favors More Upside For Bitcoin
Since hitting bottom at 2022 lows, Bitcoin formed a series of higher highs and higher lows which indicates a bullish trend. A possible bullish flag with a target of $35k was spotted on charts while bulls will keep buying dips as long as it holds above an upward trendline connecting lower highs. Thus, technically speaking, more upside can be expected for Bitcoin if today’s NFP report comes out better than anticipated by markets.
How Will Today’s NFP Report Affect Bitcoin?
If today’s NFP report proves to be better than expected then this could push up the dollar resulting in a pullback for Bitcoin which might test its rising trendline. On the other hand if US economy adds fewer jobs than predicted then this could result in further upside for bitcoin towards its potential bull flag target of $35k.
Today’s NFP report will influence not only traditional markets but also cryptocurrencies like Bitcoin due to increased correlations between them and US dollar movements. Technically speaking, Bitcoin remains biased upwards while holding above its rising trendline with possibility of testing its potential bull flag target should today’s news prove to be positive for global markets.