From 3 to 9 April, there was a period of low activity in the trading market, with the price of Bitcoin trading within the range of $27,200 to $28,775 throughout the workweek. Two exceptions to this were on Monday (April 3) and Wednesday (April 5), where an increase in volatility was observed. Despite falling to a low of $27,200, the price subsequently rebounded to $28,444.
Meanwhile, altcoins experienced more growth, causing Bitcoin’s share of the overall cryptocurrency market to decrease to 45.8%. The demand for cryptocurrency rose following a tweet by Elon Musk, in which he revealed that he changed the Twitter logo to feature a meme of a Shiba Inu dog in response to a request from a Twitter user.
Due to a decline in stock indices, the recovery of the BTC/USDt pair was limited. Investors were uneasy as data on job openings in the private sector and activity in the services sector fell short of expectations, indicating the possibility of a US recession.
Investors remained cautious and refrained from buying as they awaited the release of data on the US labor market, amid a strengthening dollar and a long weekend.
Although the March employment data did not affect the crypto market, the currency and futures markets were still active while the US stock market was closed. After the publication of statistics, the dollar index and futures for the S&P 500 rose. To strengthen bitcoin, a decrease in the dollar index and an increase in futures on the S&P 500 were necessary, according to experst.
In March, unemployment in the US decreased to 3.5% from 3.6% in February, and the number of jobs in the economy grew by 236,000, compared to 326,000 in February. A strong labor market may prompt the Federal Reserve to raise the key interest rate at the May meeting.
Based on the latest CME FedWatch data, there is a 71.2% likelihood of a rate increase to 5.25%. Although employment growth slowed in March, the labor market remains relatively robust. There is still a month before the meeting, and new statistical data could alter market sentiment.
Bitcoin Price Prediction
The battle between bullish optimism and cautious bearishness continues as Bitcoin remains within a narrow trading range of $27,600 to $28,900.
Based on technical analysis, the BTC/USD pair appears to be in a downward trend, but it may encounter resistance around the $28,250 level.
The technical outlook remains favorable for the $30,000 level to break out, with a target in the $31,000 region. However, sales may resume at the intermediate level, with the primary goal being in the $34,000 area. Furthermore, the longer the price remains stagnant, the more anxious buyers become, increasing the likelihood of closing long positions.
The $26.5-26.6k range provides support, and if trading opens with a rise in the dollar, the price will likely be drawn to this area. If this level is breached, protective orders will be triggered, and long margin positions will be liquidated. In this scenario, the $24.5k level would come into view.