There are two significant events that need to be addressed when encompassing things that are likely to transpire this week:
– End of 2023’s first quarter and expectation for the next quarter.
– Alt season possibility while BTC cools down.
– This week’s Nonfarm Payrolls (NFP) and why it is important to this bull rally.
Welcoming the second quarter of 2023
2023’s first quarter was extremely bullish for crypto participants but not so much for traders in the traditional finance markets.The below chart shows the performance of Bitcoin (BTC), Ethereum (ETH), S&P500, NASDAQ100 and Gold.Clearly, BTC and ETH are the winners in terms of returns amid the ongoing global banking crisis.
Considering the historical performance of Bitcoin, the article attached below takes a look into the significant levels for BTC from a weekly, daily and four-hour timeframes.While the overall outlook for the pioneer crypto continues to be bullish, a minor retracement is likely, which would be a blessing for investors looking to accumulate BTC.
Read more:
Bitcoin Weekly Forecast: Breaking down key BTC levels to accumulate for Q2, 2023
Additionally, Bitcoin Dominance, which is the percent share of BTC’s market capitalization with respect to the total crypto market capitalization, is at a critical hurdle.A decline in Bitcoin dominance could lead to profits rotating to altcoins, which could lead to an alt season.
The concept of capital rotation in cryptocurrencies, alt season and which category of altcoins are likely to pump is explained in detail in the article attached below.
Read More:
Here are top three altcoin categories that are likely to pump the hardest in the 2023 alt season
Nonfarm Payrolls and why it is important for Bitcoin’s 2023 bull rally
The Unemployment Rate and NFP events are scheduled to take place on March 7 at 12:30 GMT, which will set the tone for the US Federal Reserve’s next step – raise interest rates or pause.
In early March, the positive correlation between BTC and the stock market plunged due to growing concerns about the state of banks.As a result of this turmoil, crypto markets saw a massive inflow of capital, which catalyzed a continuation of the bull run that began in January 2023.
In parallel, the correlation between BTC and Gold saw an uptick and went up from -0.5 to 0.92 between March 12 and April 3, strenghtening the case for both assets to recover their safe-haven status.
As the bullish momentum exhausts, Bitcoin’s rally has come to a standstill, which has caused the aforementioned correlation to plateau.
BTC vs.Gold correlation
Recently, the correlation between Bitcoin price and S&P500 has bounced back, rising from -0.25 on March 6 to 0.49 as of April 3.
BTC vs.S&P500, NQ100 correlation
So, it will be interesting to see how Bitcoin price reacts to upcoming macroeconomic events like the unemployment rate and NFP numbers.
The consensus for NFP is 240k, which is much lower than the previous report of 311k.Depending on how much the deviation is and in what direction, Bitcoin price could either tank or have an opportunity to continue its ascent from here.
A positive surprise of a larger magnitude could be interpreted as bullish for the US Dollar by the market, which could set off a quick sell-off.
On the contrary, a negative surprise with a large enough magnitude could catalyze a move to the upside.
Top3 reads: BTC, ETH, XRP
Is Bitcoin price primed for a 15% retracement this week? Ethereum price shows sign of rally, will Ethereum climb to $2,000? XRP price coils up for 25% breakout as Ripple bulls issue ‘hurry-up signal’ to Judge Torres
Important reads
Is Bitcoin price primed for a 15% retracement this week? Will Bitcoin hit its $35,000 target in April: BTC deep dive Dogecoin whales are buying the dip: Will DOGE lead a meme coin price rally? Why Vitalik Buterin is bullish on ZK coins Controversy surrounds Arbitrum Foundation’s AIP-1 proposal amid concerns over its financial impact Will MATIC price conquer the bullish target of $2 again? Why exchange tokens Uniswap, Synthetic and Thor are rallying despite regulatory hurdles XRP holders jittery over SEC v.Ripple lawsuit outcome: Will XRP price recover? Elon Musk supports DOGE holders after $258 billion Dogecoin lawsuit LUNA Classic price dips to August 2022 lows as Terra founder Do Kwon may face five years in prison CFTC-linked self-regulatory organization issues new rules for members handling digital assets Chainlink Price Prediction: A 25% rally is likely only when LINK holders continue doing this Jim Cramer would not do business with Binance, bull news for BNB? Crypto exchange Bittrex ceases US operations citing regulatory challenges; Analyst expects more to come Shiba Inu Price Forecast: SHIB needs to hold above this level to sustain upward momentum
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