Baxia Markets
November 02, 2023

Bitcoin's Response to Macro Events: Will the Rally Continue?

market analysis header image

Bitcoin has been treading water around the $35,500 mark, with investors eagerly anticipating the release of the US Nonfarm Payrolls (NFP) report for October. This NFP figure holds significant weight among market participants, as it has the potential to shape traders' outlook on the US central bank's interest rate policies, including the possibility of prolonged higher rates or further increases. Consequently, the upcoming US NFP release is poised to be a pivotal event influencing the direction of Bitcoin's price trend.


Bitcoin has displayed a noteworthy response to recent macroeconomic developments, with the US Federal Reserve's decision to maintain interest rates at their current level bolstering Bitcoin's price rally. Consequently, BTC has managed to maintain its footing above the $35,500 threshold.

Bitcoin's Response to Macro Events: Will the Rally Continue?

BTCUSD Price Action

Following a prolonged period of sideways trading spanning three days, a breakout occurred after the release of the FOMC news just before the market's closure. BTC is now in the process of testing what was previously a resistance level, which has now transitioned into a supportive zone located in the vicinity of 35,188-34,975.


The prevailing bullish trend remains robust, underscored by the EMA 50's position above the EMA 200. While the MACD indicates a bullish correction at present due to the histogram's placement below the signal line, the stochastic has dipped into the oversold territory, potentially presenting a prime opportunity for a long position during this pullback phase.

Key Economic Releases to Watch Today

UK,  BOE Interest Rate

Forecast 5.25% vs Previous 5.25%

US,  Initial Jobless Claim

Forecast 210K vs Previous 210K

US, Non Farm Productivity

Forecast 4.1% vs Previous 3.5%

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