One month ago, bitcoin traded below $20,000 per unit. This was because crypto markets were continuing to respond to rising inflation levels and central bank policies. However, a month later, the world’s leading crypto token has moved above $23,000, despite consumer prices rising to multi-decade highs. This is where bitcoin could potentially go in the next few months, so keep this in mind.
The current market status
July saw bitcoin (BTC) mostly consolidate between a floor of $18,900, and a ceiling of $23,600, as volatility in crypto markets was higher in anticipation of the Fed’s potential 75 basis point (bps) hike.
The Federal Reserve raised interest rates in two consecutive sessions since then.
The increase in inflation was the highest in four decades. There were growing fears about an impending global recession.
Bitcoin has quietly increased despite this uncertainty.
Traders who are concerned about the impact of recession on the economy have been able to get some answers.
BTC’s price has been rising in recent weeks as a result. On July 5, the relative strength indicator (RSI) read 29 and is now at 54.37.
BTC/USD was trading at $23,019.32 as of this writing, hours after the release of the most recent non-farm payrolls reports.
The July payrolls came in at 528,000, against expectations of 250,000. This was despite concerns that the U.S. labor markets might slow down.
It could be a good thing for the bitcoin bulls who, despite concerns about a global recession and an inflation crisis, have been taking a cautious approach.
These concerns are likely to continue. However, investors have greater reasons to be optimistic as the market landscape shifts slowly.
This week has seen gold rise to a one-month high versus the dollar, with WTI crude falling to its lowest point since before Russia’s invasion of Ukraine in February.
BTC faces several critical tests over the next weeks. One is whether or not it has sufficient momentum to surpass a $24,700 ceiling.
It could be possible for bitcoin to race higher than $25,000, and the bulls will then position themselves to make a push closer to $30,000 in September.
What price do you expect bitcoin to be trading at in one month’s time? Please share your views with us in the comments.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.