Week Ahead: Bitcoin could surprise investors this week
Two main macroeconomic events this week could attempt to sway the crypto markets. Bitcoin (BTC), which showed strength last week, has slipped into a short-term consolidation. However, a shift in momentum could soon bring forth a momentary rally for BTC and altcoins.
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What to expect from macroeconomic events?
The US Federal Reserve’s Interest Rate Decision will happen on May 1 at 18:00 GMT. This event, while a key mover of forex markets, has lost its influence on the crypto markets. Additionally, expectations of interest rates remaining around 5.25% to 5.50%for longer could be one of the reasons why the crypto markets fail to move during these events.
According to the FedWatch Tool, the probability of the interest rate remaining at the current levels after the May policy meeting is about 97.3%. Therefore, it is unlikely that Bitcoin will see volatile moves.
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FedWatch Tool
The jobs data, or the Nonfarm Payrolls (NFP), will be released on May 3 at 12:30 GMT and will likely have a zero-to-minimal effect on the crypto markets.
What to expect from Bitcoin?
Bitcoin price is in a state of consolidation, producing lower highs and equal lows just above the weekly imbalance, which extends from $59,111 to $53,120. As mentioned in previous publications, a dip into the aforementioned zone is a good buying opportunity for a higher probability reversal scenario.
BTC/USDT 1- week chart
Even on the lower time frame, such as the one-hour chart, no buy signals have developed yet. More often than not, there is a bullish divergence that develops on lower time frames before the higher time frames show signs of rejuvenation. However, that is absent for Bitcoin on the one-hour chart, indicating that a further descent is likely before buyers find it attractive to purchase BTC.
With the start of the new week, however, there is a chance of a sudden spike in selling pressure that knocks down Bitcoin price into the aforementioned imbalance zone, allowing investors to accumulate BTC at a discounted price. With that in mind, traders should be watchful of a potential buy-the-dip opportunity early in the week that turns into a recovery rally later.
Altcoins to focus
Meme coins have shown a strong reaction to Bitcoin's recent stable price action. Bonk (BONK) more than doubled after forming a bottom in the third week of April. Shiba Inu (SHIB) also registered double-digit gains.
A standalone altcoin that showed a good performance in the past week is Arweve (AR), a blockchain-based storage crypto, has shot up 10%. Some of these first movers could further trigger a rally for the underlying category. Other blockchain-based storage altcoins include Filecoin (FIL) and Internet Computer (ICP).
Read more: The reason behind Bonk’s 105% rise and if you should buy now
Apart from the meme coin category, investors must keep an eye on the top three cryptocurrencies – Bitcoin, Ethereum (ETH) and Ripple (XRP).
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Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
