On August 3, Bitcoin continued its previous single-day decline, falling nearly 1.75% to $29,084.

Despite the positive predictions from Bloomberg analysts regarding spot ETF approval, Bitcoin has been facing downward pressure in recent trading sessions, largely due to a stronger U.S. dollar.

Cryptocurrencies are experiencing choppy waters as markets await the release of the non-farm payrolls (NFP) report on Friday, prompting investors to closely monitor their price action and potential trend changes.

This article examines the current state of Bitcoin and explores the key factors that have influenced its price action in the near term.

Bitcoin value falls despite Bloomberg analyst's optimistic spot ETF approval forecast

According to Bloomberg Intelligence analysts, the likelihood of launching a Bitcoin ETF in the United States this year has risen from 50% to 65%.

This is because major financial institutions including BlackRock and Fidelity have submitted ETF applications, indicating the growing acceptance in the traditional financial sector.

SEC Chairman Gary Gensler was interviewed and the SEC has apparently approved of Coinbase's Bitcoin trading platform.

This could indicate a possible change in regulatory approaches that could favor cryptocurrency-related products such as ETFs.

The outcome of the SEC’s case against Grayscale could also impact market sentiment.

While these developments suggest Bitcoin has the potential for long-term growth, short-term price declines may be related to the appreciation of the U.S. dollar.

Bitcoin faces challenges as dollar strengthens

Yesterday, the U.S. Dollar Index (DXY) rose 0.18% to $102.78, its highest level in 20 days.

This marked the third straight day that the dollar rose against a basket of six major currencies.

The dollar’s ​​strength can be attributed to the positive outlook ahead of the upcoming non-farm payrolls data to be released on Friday.

The market expects non-farm payrolls in July to be around 203,000, down 60,000 from June, and average hourly earnings to be 0.3%, down from 0.4% in June.

Expectations of better-than-expected data have already led to pricing in the non-farm payrolls data.

Many are optimistic about the current outlook. This is due to the latest ADP Nonfarm Payrolls Change report which showed a figure of 324K in July, beating expectations of 184K.

This unexpected rise led to a stronger U.S. dollar, which in turn affected the price of BTC/USD.BTC/USD.

Bitcoin Price Prediction

On the 4-hour timeframe, we examined Bitcoin’s recent market action and found it to be trading in a limited range.

The cryptocurrency encountered resistance near $30,000 and established support near $29,000.

Currently, the outlook for Bitcoin may not be optimistic as key technical indicators such as the RSI and MACD have entered bearish territory.

The recent bearish move has pushed the price to the $29,100 level, increasing the possibility of a sustained bearish correction and subsequent drop to $28,700.

Nonetheless, there is a glimmer of hope for Bitcoin as it could find support around $28,700 during the ongoing decline. If successfully broken, its next target could be $28,200.