In short: Bitcoin ended its eight consecutive red daily candles with a green one on Sunday, entering a new week in the crypto market. Although not a blockbuster week, focus is set on the US Dollar Index (DXY), which is expected to consolidate and provide tailwind for Bitcoin and crypto prices. Key dates to watch this week include Tuesday's US Retail Sales figures and Friday's speech from Federal Reserve Chairman Jerome Powell, expected to impact market volatility. Bitcoin's price is currently at $27,500 while DXY is showing a slight pullback.
Our quick analysis:
After a tumultuous week with eight consecutive red daily candlesticks, the crypto market is showing a glimmer of hope with a green daily candle to start the week. But don't get too comfortable, as this week could still be critical for the market's direction.
The US Dollar Index (DXY) remains a key focus, with a bounce up from a historically significant support level causing pressure on Bitcoin and crypto prices. And this week's economic data releases could make or break the DXY's direction.
On Tuesday, the US Census Bureau will release the final figures for April's retail sales, with forecasts predicting a rebound in consumer sentiment. Strong consumer spending could accelerate the DXY's rally, while a shortfall could provide a tailwind for Bitcoin and crypto prices.
Wednesday sees the release of preliminary figures for April's building permits, which could be another catalyst for the market if it exceeds expectations.
Thursday's release of the Philly Fed manufacturing index is a leading indicator for the broader financial market and could influence the all-important ISM purchasing managers index. A below-forecast reading could see a repeat of last month's bearish reaction in the financial market.
But the most important day of the week is Friday, as Federal Reserve Chairman Jerome Powell is set to provide an update on the Fed's interest rate and monetary policy stance. With 14 Fed members scheduled to speak throughout the week, market volatility is likely to increase.
The DXY could be due for a head-and-shoulders reversal, signaling a downtrend rather than an uptrend. And as we saw in late 2020, the reversal of the DXY marked the beginning of the Bitcoin bull run.
At press time, the Bitcoin price rallied to $27,500 while the DXY showed a slight pullback. Buckle up and get ready for a week of trend-setting for Bitcoin and crypto.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
After a tumultuous week with eight consecutive red daily candlesticks, the crypto market is showing a glimmer of hope with a green daily candle to start the week. But don't get too comfortable, as this week could still be critical for the market's direction.
The US Dollar Index (DXY) remains a key focus, with a bounce up from a historically significant support level causing pressure on Bitcoin and crypto prices. And this week's economic data releases could make or break the DXY's direction.
On Tuesday, the US Census Bureau will release the final figures for April's retail sales, with forecasts predicting a rebound in consumer sentiment. Strong consumer spending could accelerate the DXY's rally, while a shortfall could provide a tailwind for Bitcoin and crypto prices.
Wednesday sees the release of preliminary figures for April's building permits, which could be another catalyst for the market if it exceeds expectations.
Thursday's release of the Philly Fed manufacturing index is a leading indicator for the broader financial market and could influence the all-important ISM purchasing managers index. A below-forecast reading could see a repeat of last month's bearish reaction in the financial market.
But the most important day of the week is Friday, as Federal Reserve Chairman Jerome Powell is set to provide an update on the Fed's interest rate and monetary policy stance. With 14 Fed members scheduled to speak throughout the week, market volatility is likely to increase.
The DXY could be due for a head-and-shoulders reversal, signaling a downtrend rather than an uptrend. And as we saw in late 2020, the reversal of the DXY marked the beginning of the Bitcoin bull run.
At press time, the Bitcoin price rallied to $27,500 while the DXY showed a slight pullback. Buckle up and get ready for a week of trend-setting for Bitcoin and crypto.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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