Weekly Market Update: Bitcoin price soars to $21K as U.S. dollar weakens.
  • Bitcoin is testing new highs
  • What’s in store next week?

This week, the ECB raised the interest rate by the expected 75 basis points to 1.25%. This is the largest single rate hike ever, and the ECB warns that more increases will follow to control high inflation.

Initial jobless claims in the U.S. fell to a three-month low of 222,000, down from 228,000 the previous week. The weekly claims figure is well below economists’ expectations of 240,000. The labor market data is expected to reaffirm the Fed’s hawkish stance on tightening interest rates.

Bitcoin is testing new highs

Bitcoin took liquidity from the $19,000 mark and posted gains of over 9% in the last 24 hours. At the time of writing, the BTC price stands at $21,000. This week, a significant number of positions were liquidated when BTC briefly fell below the key support level of $19,000.

In most cases, traders set their stop loss positions directly below structural points, such as the last HL. As a result, BTC gained additional liquidity by breaking through the lows of key structural levels. The next possible resistance for BTC could be the daily supply zone at $21,400 - $21,800 before it can return to the $25,000 region and continue the upward movement.

Ethereum is making its way to the next daily supply zone around $1810 - 1880. It could be the run-up to the upcoming Ethereum 2.0 merger, which will decrease the ETH supply.

What’s in store next week?

Next week will be dominated by consumer price indexes (CPI). On Tuesday, the U.S. Bureau of Labor Statistics will release the Consumer Price Index report for August. Economists expect the Fed to raise interest rates by 50 to 75 basis points, but the data could influence the Fed's thinking for the upcoming September meeting.

On Wednesday, the UK Consumer Price Index will be released; a 9.8% month-on-month decline is expected. At the end of the week, on Friday, the consumer price index for the Eurozone will be announced. It is expected to remain at the level of the ATH, the level of the previous month.

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