The Bitcoin price jumped to a five-month high of $57,000 on Monday as investors waited for the upcoming American inflation data. The fear and greed index also remained in the fear zone. The BTC is trading at $56,900, which is about 100% above its lowest level in July.
BTC crosses key resistance
The BTC price rallied as investors remained optimistic about digital currencies. The bullish rally intensified during the weekend as investors reflected on the relatively mixed US employment numbers.
On Friday, data published by the Bureau of Labor Statistics (BLS) showed that the American economy added more than 194k jobs in September. This increase was substantially lower than the median estimate of 500k and the previous month’s increase of 366k.
The US unemployment rate declined to 4.8%, which is a sign that many people are choosing to remain outside of the labour market. Wages also rose by 4.6% in September.
The next key major data that could move Bitcoin prices will be the latest US inflation numbers that are scheduled for Wednesday. The data is expected to show that consumer prices rose by 5.3% in September while core CPI rose by 4.2%. These numbers will be significantly higher than the Federal Reserve target of 2.0%.
Employment and inflation numbers are important for cryptocurrency prices because of their impact on interest rates. If the numbers show that inflation rose at a faster pace than expected, there is a likelihood that the Fed will turn hawkish. In most cases, Bitcoin prices tend to do well in a dovish environment.
The next additional catalyst for the BTC price will be this week’s earning season. The season will start with the release of key earnings by companies like Blackrock, JP Morgan, Morgan Stanley, and Goldman Sachs. Some of these companies could provide hints about their cryptocurrencies strategy.
Bitcoin price prediction
The BTC price managed to cross the key resistance level at $52,715 recently. This was a notable level since it was the highest level on September 7. The price is now about $10,000 below its all-time high. It has also risen above the 25-day and 50-day moving averages (MA. Also, it has moved above the important neckline of the inverted head and shoulders pattern.
Therefore, the path of the least resistance for the Bitcoin price is in the upside, with the next key level to watch being at $60,000.
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