Because the Bitcoin and crypto market continues to be locked in a good vary, traders are eagerly eyeing the upcoming week for potential catalysts that might break the present stalemate. A number of macroeconomic occasions, together with a big technical sign for Bitcoin and crypto, are poised to affect the market’s course.
Listed here are the 5 must-watch occasions that crypto fans and traders ought to maintain an in depth eye on within the week forward:
#1 FOMC And Curiosity Fee Resolution By The Fed (Wednesday, July 26)
The rate of interest choice shall be introduced on Wednesday, at 02:00 pm EST, adopted by Fed Chair Powell’s financial coverage press convention at 02:30 pm EST.
Probably the most essential occasion of the week is the Federal Reserve’s rate of interest choice. In line with the CME FedWatch device, markets are anticipating a 25 foundation factors fee hike with a 99.8% chance. Nevertheless, the speed hike is very anticipated to be the final on this cycle. Because of this, the main target shall be on Fed Chairman Jerome Powell’s speech.
The discussions and statements made by Powell in the course of the press convention shall be intently monitored by traders, as they could present precious insights into the central financial institution’s future financial coverage and hints if the mountain climbing cycle is completed. Due to this fact, the FOMC press convention could possibly be the catalyst for a break in both course. Additionally, traders needs to be cautious of pre-FOMC volatility.
#2 Q2 2023 US GDP Knowledge (Thursday, July 27)
The second occasion to control is the discharge of the US Gross Home Product (GDP) knowledge for the second quarter of 2023. This indicator will present a complete overview of the nation’s financial efficiency throughout that interval.
A powerful GDP determine might enhance market sentiment and have implications for the cryptocurrency market, whereas weaker-than-expected outcomes might increase issues and probably result in elevated volatility. Within the first quarter of 2023, GDP was nonetheless at 2.0%. For Q2, the consensus is 1.7%.
#3 PCE Inflation Knowledge (Friday, July 28)
At 8:30 am EST, the US Private Consumption Expenditures (PCE) worth index, the Federal Reserve’s most well-liked gauge of inflation, shall be revealed. An famend rise of PCE inflation knowledge could possibly be a significant concern for monetary markets, and any surprises to the draw back is prone to impression the monetary markets negatively.
As with the Shopper Value Index (CPI) knowledge for July, the primary focus shall be on the core inflation knowledge. In June, core PCE stood at 4.6%. For July, an additional drop to 4.2% is predicted.
#4 Earnings Season In The US
The reporting season within the US reaches its peak throughout this week, with important tech giants like Microsoft and Alphabet reporting their quarterly figures on Tuesday. On Wednesday, Fb’s guardian firm, Meta, will announce its outcomes.
These earnings stories have the potential to sway the efficiency of the Nasdaq100 and, in flip, affect the crypto market. Optimistic company earnings might uplift investor sentiment, whereas disappointing figures might result in cautiousness within the crypto area.
#5 Bitcoin And Crypto Bollinger Bands
Amidst the macro financial occasions, it’s essential to not overlook technical indicators inside the Bitcoin and crypto market. The famend analyst Josh Olszewicz has identified that Bitcoin’s weekly Bollinger Bands have reached traditionally tight ranges. Bollinger Bands are volatility indicators, and after they contract considerably, it typically indicators an imminent worth transfer.
“If you happen to assume the $BTC market feels lifeless, weekly bollinger bands would agree. That is formally the tightest bollinger bands have ever been on the weekly timeframe,” says famend analyst Josh Olszewicz.
Additionally, Ethereum’s one week Bollinger Bands are the tightest in its total historical past. “TOTAL Crypto Market Cap 1W Bollinger Bands are additionally the tightest within the historical past of the chart,” as Bitcoinist chief analyst Tony “The Bull” remarked by way of Twitter.
Because the crypto market experiences this tight vary, many are anticipating a possible break in both course, making it important to remain vigilant for sudden worth actions.
At press time, Bitcoin nonetheless hovered on the decrease finish of the 4-week vary, buying and selling at $29,859.
Featured picture from iStock, chart from TradingView.com