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Two major macroeconomic events this week could attempt to influence crypto markets. Bitcoin (BTC), which showed strength last week, has entered a short-term consolidation. However, a change in momentum could soon trigger a momentary rally for BTC and altcoins.

Read too:

What to expect from macroeconomic events?

The US Federal Reserve’s interest rate decision will take place on May 1st at 6pm GMT. This event, although an important driver of forex markets, has lost its influence on crypto markets. Additionally, expectations that interest rates will remain around 5.25% to 5.50% for longer could be one of the reasons why cryptocurrency markets are unable to move during these events.

According to the FedWatch tool, the probability of interest rates remaining at current levels after the May policy meeting is about 97.3%. Therefore, Bitcoin is unlikely to see volatile movements.

FedWatch Tool

The jobs data, or Nonfarm Payrolls (NFP), will be released on May 3 at 12:30 GMT and will likely have a zero to minimal effect on 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 stretches from $59,111 to $53,120. As mentioned in previous publicationsa drop in the mentioned zone is a good buying opportunity for a higher probability reversal scenario.

BTC/USDT 1-Week Chart

Even on the lowest time frame such as the one-hour chart, buy signals have not yet developed. Most of the time, there is a bullish divergence that develops on lower time frames before the higher time frames show signs of rejuvenation. However, this is absent for Bitcoin on the hourly chart, indicating that a further decline is likely before buyers find it attractive to buy BTC.

As the new week begins, however, there is a chance of a sudden increase in selling pressure that drops the price of Bitcoin into the aforementioned imbalance zone, allowing investors to accumulate BTC at a discounted price. With this in mind, traders should be on the lookout for a potential buying opportunity early in the week that will turn into a rally later.

Altcoins to focus on

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 posted double-digit gains.

One standalone altcoin that performed well last week is Arweve (AR), a blockchain-based storage crypto, which soared 10%. Some of these pioneers could trigger further recovery for the underlying category. Other blockchain-based storage altcoins include Filecoin (FIL) and Internet Computer (ICP).

See more information: The reason behind Bonk’s 105% surge and whether you should buy now

In addition to the meme coin category, investors should keep an eye on the top three cryptocurrencies – Bitcoin, Ethereum (ETH) and Ripple (XRP).

3 main readings

Two major macroeconomic events this week could attempt to influence crypto markets. Bitcoin (BTC), which showed strength last week, has entered a short-term consolidation. However, a change in momentum could soon trigger a momentary rally for BTC and altcoins.

Read too:

What to expect from macroeconomic events?

The US Federal Reserve’s interest rate decision will take place on May 1st at 6pm GMT. This event, although an important driver of forex markets, has lost its influence on crypto markets. Additionally, expectations that interest rates will remain around 5.25% to 5.50% for longer could be one of the reasons why cryptocurrency markets are unable to move during these events.

According to the FedWatch tool, the probability of interest rates remaining at current levels after the May policy meeting is about 97.3%. Therefore, Bitcoin is unlikely to see volatile movements.

FedWatch Tool

The jobs data, or Nonfarm Payrolls (NFP), will be released on May 3 at 12:30 GMT and will likely have a zero to minimal effect on 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 stretches from $59,111 to $53,120. As mentioned in previous publicationsa drop in the mentioned zone is a good buying opportunity for a higher probability reversal scenario.

BTC/USDT 1-Week Chart

Even on the lowest time frame like the one-hour chart, no buy signals have developed yet. Most of the time, there is a bullish divergence that develops on lower time frames before the higher time frames show signs of rejuvenation. However, this is absent for Bitcoin on the hourly chart, indicating that a further decline is likely before buyers find it attractive to buy BTC.

As the new week begins, however, there is a chance of a sudden increase in selling pressure that drops the price of Bitcoin into the aforementioned imbalance zone, allowing investors to accumulate BTC at a discounted price. With this in mind, traders should be on the lookout for a potential buying opportunity early in the week that will turn into a rally later.

Altcoins to focus on

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 posted double-digit gains.

One standalone altcoin that performed well last week is Arweve (AR), a blockchain-based storage crypto, which soared 10%. Some of these pioneers could trigger further recovery for the underlying category. Other blockchain-based storage altcoins include Filecoin (FIL) and Internet Computer (ICP).

See more information: The reason behind Bonk’s 105% surge and whether you should buy now

In addition to the meme coin category, investors should keep an eye on the top three cryptocurrencies – Bitcoin, Ethereum (ETH) and Ripple (XRP).

3 main readings

Fuente