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The crypto market is anticipating the release of an important macroeconomic report that could dictate the direction of asset prices.
In light of this, what do analysts think, and how could this impact the price of Bitcoin?
Bitcoin Price Action
Currently, the leading cryptocurrency trades at $18,902, a 5.76% downtrend in the past 24 hours. However, its weekly performance depicts a loss of 0.50%.
Bitcoin’s performance has affected its technicals. The asset currently trails its major moving average (MA) indicators, although it trades above the 10-day MA of $18,900. With the market in a bearish position, BTC is expected to slip below that line soon.
BTC’s moving average convergence divergence (MACD) is also negative, giving off a sell signal. However, long-term investors can take solace in the asset’s relative strength index (RSI) of 45.21, which shows it is still underbought.
Dollar Gains Ground, Dragging Bitcoin Down
The market’s current position appears to be driven by US dollar price gains. The US Dollar Index (DXY) edged higher in the early hours of Wednesday, meaning that the greenback has gained more momentum after dropping on Tuesday.
The dollar’s gain has proven to be crypto’s loss. The crypto market is down by 5.09%, with its total market valuation (TVL) currently at $921 billion.
Income and Spending Data Incoming
This week, the market is gearing up for yet another macroeconomic report from the government. On Friday, the Bureau of Economic Analysis will release a report on personal income and spending that will reveal where and how inflation has affected consumer spending.
In July, personal spending in the United States jumped by just 0.1% month-over-month – compared to analysts’ expectations of 0.4%. That marked the weakest performance thus far in the year, compared to a 1% increase in June.
While consumer spending has remained resilient despite the rising threat of inflation, the Federal Reserve’s recent hike in interest rates by .75 basis points is expected to have a more pronounced effect on the metric.
The Consumer Price Index (CPI) jumping higher than expected for August should also spill over into consumer spending. If these indices come out higher than analysts expect, they could weigh on the dollar’s price, stalling its rise. And with the dollar moving in inverse correlation with Bitcoin right now, a drop in its value could lead to Bitcoin’s price surge.
Tamadoge Presents An Opportunity to Beat the Trends
As things stand, the market is in a very finicky position. Investors will be waiting eagerly for Friday’s spending data release, which could affect the prices of digital assets in the short term.
However, investors looking for long-term gains can find assets that have strong fundamentals at the moment. One such asset is TAMA. The coin is the platform token for Tamadoge – a blockchain gaming project that combines non-fungible tokens (NFTs) and makes a play for the metaverse.
Following a successful presale where it earned $19 million in eight weeks, TAMA has now listed on the OKX exchange. In the past 24 hours, the asset garnered $4.36 million in trading volumes, showing massive investor demand.
This asset appears to be set for a massive price surge, and investors should remain interested.
