"No Hiring of New Drivers: Bitcoin's Potential Movements in Coming Days"
Rewritten Article:
Bitcoin's Weekend Position: A Price Analysis
It's Sunday, and the digital coin, Bitcoin (BTC), is currently trading around the $95k mark, showing a moderate 1.5% uptick from the previous weekend. Let's dive into a breakdown of the market situation to catch a glimpse of the Bitcoin price movement over the upcoming week.
### Bitcoin (BTC/USD) Market Overview
Last week was turbulent for Bitcoin, with the coin swinging between $92.8k - $97.9k early and finally closing the week around $96k, adding 2.37% to its value. On April 28, the coin unsuccessfully challenged the $95.5k resistance three times before settling near it. On April 29, the $92.8k support level was confirmed.
On April 30, the price dropped to $94.1k, reflecting a US GDP decline of 0.3%, the first contraction since 2022, contrasting expectations of a 0.4% growth. Bitcoin's trajectory matched that of the S&P 500 index during this period.
On May 1, BTC broke through the $95.5k resistance and peaked at $97.4k. The tech indicators indicated potential growth up to $100k. However, on May 2, the price progress slowed, reaching $97.9k before the end of the week. On May 3, BTC retreated to $96k.
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This Week's Key Events:
- US GDP fell by 0.3% in Q1, contrary to the expected 0.4% growth, intensifying recession fears.
- The US labor market saw an addition of 177k jobs in April, with revision to the previous two months pointing to a 58k slowdown.
- The PCE index climbed to 3.6%, up from 2.4% in the preceding quarter, increasing stagflation risks.
- Morgan Stanley and Charles Schwab launched crypto trading. Major banks are preparing to debut Bitcoin ETFs by year-end.
- Donald Trump expressed optimism about potential trade deals with China, India, South Korea, and Japan.
- The yield on 2-year US government bonds dropped to 3.7%, 70 basis points below the Fed's key rate, indicating a potential rate cut.
- Scott Bessent, US Secretary of the Treasury, emphasized that the bond market signals a need for monetary policy easing.
According to BitRiver's assessment, the technical landscape favors buyers, with a foreseen rise to the psychological $100k mark. Key support levels stretch from $95.5k to $93.55k, while a break below the latter may trigger a slide to $91.3k.
To propel further growth, new catalysts are needed, as the market's future price dynamics are highly dependent on forthcoming macroeconomic data and central bank decisions.
Expect the following crucial events this week that could potentially influence the market:
- Release of the S&P Global Services and Composite PMI for April on May 5.
- FOMC meeting on May 7, where a decision on the interest rate is anticipated. Although the rate is expected to remain at 4.50%, FOMC members' comments may provide additional insights about future monetary policy.
- Speeches by several FOMC members, including K. Waller and the Fed's vice chair for supervision, Barr, on May 9.
### Cruising the Crypto Waters: Profit-Taking and Patience
As we sail into the spring season, it's essential to tread carefully in the Bitcoin market. While BTC's future looks promising, profit-taking and patience are crucial. Bitcoin continues to dazzle with its resilience and potential for growth, offering opportunities for both seasoned traders and novice investors alike. However, remember to stay informed, conduct thorough research, and avoid hasty decisions. The cryptoverse awaits!
- As the market awaits the upcoming Federal Open Market Committee (FOMC) meeting on May 7, investors could consider researching the potential impact of FOMC members' comments on the future of Bitcoin's price.
- In light of the S&P Global Services and Composite PMI release for April scheduled for May 5, tech-focused investors might find it interesting to analyze the correlation between these economic indicators and Bitcoin's trajectory.
