Bitcoin Breaks Back Above Key Level – Where Next?

BTC Breaks HigherFollowing a period of consolidation over the last week, Bitcoin prices exploded higher yesterday, carving out a more than 8% gain. The rally saw BTC breaking back above the 27415 level, a key support level for the market, putting focus back on a further push higher. The driver behind the move was the drop in USD in response to weaker-than-forecast US data.  With further US data weakness, rate hike expectations for next month have been paired back further, allowing risk assets room to move higher. Equities, tech stocks in particular, and commodities saw strong gains across the day, feeding into higher prices for crypto assets.US Data on Watch – Bullish BTC RisksLooking ahead, the key focus for BTC traders will clearly be USD movements across the week. With Friday’s jobs data likely to be seen as make-or-break for a September hike, there is big USD volatility risk into the event. If we see the expected weakness in jobs data confirmed this should send USD lower into next week, allowing BTC room to push further. A strong downside surprise would be the best outcome for BTC bulls with the market likely to quickly test the 3000 level if we see USD under heavy selling pressure.Technical ViewsBitcoinThe rally in BTC has seen the market breaking back above the 27415 level. For now, the rally has stalled into a retest of the underside of the broken bull trend line. However, with momentum studies pushing higher, the focus is on a continuation north with the highs around the 3k mark the next objective for bulls.