• July non-farm payrolls report due today, dollar volatility expected to increase

  • Bitcoin nears yearly high

  • Bitcoin’s bias remains bullish as the market holds above the uptrend line

The Non-Farm Payrolls report (NFP) is released on the first Friday of every month. It shows the changes in the number of workers in the US economy, the world's largest economy.

Therefore, economic reports directly affect financial markets. The US dollar fluctuates significantly after the NFP report is released, and even cryptocurrency market participants are interested in trading the report.

As more institutional investors include Bitcoin in their portfolios, Bitcoin's correlation with the strength of the U.S. dollar has increased. This year, the U.S. dollar has fallen, with the EUR/USD exchange rate hitting a new high for the year less than two weeks ago.

Therefore, it is not surprising that Bitcoin remains close to its yearly highs ahead of the July non-farm payrolls report. Moreover, the bias remains in place as Bitcoin remains above the ascending trendline that marks a bullish trend into 2023.

Bias remains bullish as Bitcoin holds above uptrend line

The technical picture favors greater upside for Bitcoin for at least three reasons.

First, Bitcoin has formed a series of higher highs and higher lows since the 2022 low. This pattern is typical in a bullish trend, and at the time of formation, the bias remains bullish.

Secondly, we can correctly identify the bullish trend by connecting lower highs. As long as the price action remains above it, the bulls will continue to buy on dips.

Third, the possible bullish flag marked in blue on the chart above has Bitcoin targeting $35,000, as indicated by its measured movement.

Therefore, today’s non-farm payrolls report could make or break this trend. Bitcoin could test the trendline as the dollar strengthens following a better-than-expected report. On the other hand, if the U.S. economy adds fewer jobs in July than the market expects, Bitcoin could follow a cautious trend of a bullish flag in the coming days.