The crypto market anticipates the release of crucial US job data and potential Federal Reserve rate cuts. Bitcoin is currently trading at $58,279.77, a 1.37% decline in the last 24 hours and a stranger 8.97% drop in the last 7 days. Despite the recent downtrend, Bitcoin is valued at $1.2 trillion market cap. The 24-hour trading volume has also seen a huge drop of 44.05%, reaching $15.6 billion.
We are closely watching the upcoming US employment figures, scheduled for release on Friday, September 6. Market estimates suggest the US unemployment report may show a rise to 162,000 for August, up from 114,000 in July. The monthly unemployment rate is expected to decrease slightly to 4.2% from 4.3% in the previous month.
These employment statistics are crucial in gauging the nation's economic health and could greatly impact the Federal Reserve's decisions on interest rates. Generally, a cooling job market tends to boost cryptocurrency market sentiment, as it may lead to more accommodative monetary policies.
Several Federal Reserve officials are set to speak this week, providing insights into the central bank's stance on upcoming policy rate plans. The crypto community is particularly interested in the potential for rate cuts in September, which could trigger a rally in Bitcoin and other digital assets.
Bitcoin's price action is currently confined within a larger bullish flag pattern, with the next significant resistance level around $68,000. A breakout and close above this level could confirm bullish momentum and potentially lead to a massive rally. In the short term, Bitcoin is testing a support level at $58,200, which also serves as a retest of a smaller bullish flag pattern within the larger structure.
The price has been consolidating at this level for about four days. If Bitcoin manages to break above the immediate resistance at $61,500, it could target the recent high of $65,500 before challenging the main bullish flag resistance at $68,000. However, failure to hold the current support could see Bitcoin drop to $53,000, where it might find support at the base of the bullish flag.
Technical indicators paint a mixed picture for Bitcoin. The MACD is currently bearish, with the MACD line below the signal line. The RSI stands at 42, indicating selling pressure in the market.
A recent formation of a Golden Cross pattern in our recent report suggests long-term upward potential. Additionally, a large inverse Head and Shoulders pattern is forming, which could propel Bitcoin above $100,000 if it completes.
Metrics data further shows that NUPL (Net Unrealized Profit/Loss) has declined from 0.5 to 0.4 over the past week, suggesting a shift from unrealized profit to unrealized loss. This metric indicates growing bearish sentiment and potential selling pressure.
Based on our technicals, Bitcoin could reach new all-time highs in Q4 2024 but hit $100K in Q1 2025.