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. 

Also read: 

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. 

FedWatch Tool

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

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).

Top 3 Reads


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP