Bitcoin Holds Steady Ahead of US Jobs Data, but $30K Price Target Still on the Table

In the Brief:

  • Bitcoin is waiting for the nonfarm payroll report to serve as a catalyst for risk assets.
  • It is in a narrow trading range around $28,000.
  • The crypto community is looking at whether support will hold, and if it does, it is expected to rally to $30,000 next.
  • Bollinger bands suggest a challenge of the upper or lower boundary should happen soon, leading to volatility.

3 - 5 minute read

Bitcoin is currently trading in a narrow range, hovering around $28,000 for BTC/USD, awaiting the week’s main United States macroeconomic data, the nonfarm payroll (NFP) numbers that could potentially serve as the final catalyst for risk assets. Expectations are that there will be a 3.6% increase, similar to last month. Based on the financial numbers from this week, it is expected to be between 3.7-3.8%. Michaël van de Poppe, CEO of trading firm Eight, said, “Result; $DXY down, $BTC unchanged and indices down/up depending on how far the outlier will be.” The current range may hold for a while, which means it will be important to watch the capital flow on altcoins for confirmation.

Bitcoin has been consolidating for a couple of weeks now, whereas old altcoins are breaking out. The crypto community is looking at support, and if it stays through NFP, it will be expected to rally to $30,000 next. Fellow trader Crypto Tony agreed that the current trading range would remain for a while as alts run, confirming the capital flow is in motion. Popular trader Anbessa shows similar downside targets as Van de Poppe, eyeing $27,940 as an important intraday level to defend.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bollinger Bands Portend BTC Price Volatility

Many traders have analyzed the volatility of Bitcoin in the last few weeks. Popular analyst HornHairs noted that Bollinger bands were offering a telltale sign that calm conditions were about to break. In an accompanying chart, the Bollinger bands were “squeezing” around the spot price, reflecting the current tight range, with the implication that a challenge of the upper or lower boundary should happen soon.

“I’m still looking at support here, through which $27,600 needs to sustain. If that’s lost, $25,000-25,400 seems likely. Holding here through NFP -> $30,000 next.”

According to statistics from Coinglass, Bitcoin is currently down 2.3% in April. The year 2023 has been a year of contrast in its volatility. In January, BTC/USD gained 40%, and in February, it ended almost exactly at its starting point. In March, the upside totaled 23%.

BTC/USD 1-day candle chart (Bitstamp) with Bollinger bands. Source: TradingView

What Does This Mean for Traders?

With Bitcoin hovering around $28,000, there is no telltale sign when the market will move. However, with Bollinger bands “squeezing,” the implication is that a challenge of the upper or lower boundary should happen soon. Traders should be ready with their weapons of choice for the volatility ahead. BTC/USD has been consolidating for a while, which means traders should focus on capital flow in altcoins as confirmation. Alternative support at $27,600 is a critical level to keep Bitcoin on standby. A major resistance level of $30,000 is expected once the current range holds through the NFP report.

Disclaimer: The content in this article is provided for informational purposes only and should not be considered as financial or trading advice. We are not financial advisors, and trading carries high risk. Always consult a professional financial advisor before making any investment decisions.

Leave a Reply

Your email address will not be published. Required fields are marked *