BTC Price Outlook BTC Faces Some Significant Tests in the Coming Weeks

Exactly one month ago today, bitcoin was trading below $20k per unit 

as crypto markets continued to respond to rising inflation and central bank policy.

 Despite consumer prices reaching multi-decade highs, the world's largest crypto asset has climbed above $23,000 a month later. So, with this in mind, where may bitcoin be headed in the next weeks?

In July, bitcoin (BTC) mostly consolidated between a floor of $18,900 and a ceiling of $23,600, as volatility in crypto markets increased in anticipation of the Fed's potential 75 basis point (bps) increase.

Since then, the Federal Reserve has raised interest rates in consecutive sessions, increasing rates by 0.75 percent in July and August.

This came as inflation in the United States reached its highest level in over four decades, and as fears of a worldwide recession grew.

Despite this, bitcoin has gradually increased as the market's ongoing uncertainty has started to gradually dissipate.

Although fears about the magnitude of a recession persist, traders who were concerned about the Fed's course of action have had some of their concerns addressed.

As a result, price strength in BTC has significantly increased in recent weeks, with the relative strength index (RSI) rising from 29 on July 5 to 54.47 presently.

As of the time of writing, BTC/USD is currently trading at $23,204, just hours after the latest non-farm payrolls report.

After worries about a potential downturn in the US labour market, payrolls for July came in at 528k last month, compared to predictions of 250k.

This might be a boon for bitcoin bulls, who have been on the defensive in recent months due to fears of a worldwide recession during the inflation crisis. Although these concerns will persist, investors now have more reasons to be positive as the market's picture continues to alter gradually.

This week, gold reached a one-month high against the US dollar, while WTI crude fell to its lowest level since before Russia's invasion of Ukraine in February.

BTC now faces some critical tests in the coming weeks, the most crucial of which is whether it has the momentum to break over a major and much higher ceiling of $24,700. If it is able to do so, BTC might break through $25,000, with bulls positioning for a move closer to $30k in September.

Read also: Cryptocurrency price update: BITCOIN PRICE PREDICTION: Bulls aim for $25000 as the crypto macro front seems optimistic.