Bitcoin
Bitcoin Price is Plummeting: Bulls Need to Clear $28,000 for More Upside
Bitcoin price has been in the red for four consecutive days, starting a fresh decline below the $27,500 support level. At the time of writing, Bitcoin had lost 1.39% to trade at $26,832.20. The cryptocurrency market leader has lost more than 7% in the past four days but remains 62% higher in the year to date. Its total market cap has slipped to $520 billion over the past 24 hours, with the asset’s total volume falling further.
Fundamentals
Bitcoin price has been in a freefall for the past few weeks, ending the month of May more than 8% lower, capping its first down month since the start of the year. Bitcoin experienced its worst month in May since November 2022 as optimism around the US debt ceiling rally melted away. Ethereum, the second-largest cryptocurrency by market cap, also fell more than 2% in May, its worst month since December 2022.
The cryptocurrency market has been moving in tandem with major stock averages, which closed lower on Wednesday as investors shifted their focus to the House vote on the US debt ceiling deal. A divided US House of Representatives passed a bill to suspend the US debt ceiling deal to 2025 as agreed by US President Joe Biden and House Speaker Kevin McCarthy.
Focus is now on the Democratic-led Senate as investors closely watch to see how the bill will fare. With only a few days left before the federal government enters a default, running out of money to pay its bills, investors seem to be in conservation mode.
The US dollar has retreated against most of its major peers as traders trim expectations of the Federal Reserve hiking interest rates further in its June meeting. Even so, the fast-approaching debt ceiling deadline has offered the greenback safe-haven support.
Bitcoin Price Analysis
Bitcoin price has failed to start a fresh upside trajectory above the key resistance level of $28,000. The asset has slipped below the key support zone at $27,500 and currently hovers around the crucial support level of $26,500. The coin is moving below the bearish trend line shown in yellow.
On the daily chart, Bitcoin price is moving below and above the 50-day and 200-day exponential moving averages, respectively. It is also moving below the 50-day and 100-day simple moving averages. Its Relative Strength Index (RSI) is moving slightly below the signal line.
Therefore, the next resistance level for the Bitcoin price is at the 50-day EMA at $27,404. An upside trend above this level might push the price higher to $28,000. Conversely, if the Bitcoin price fails to meet the aforementioned resistance level, it will move lower to the immediate support level of $26,500.
BTC Price Chart
Bitcoin price jumped more than 3% on Monday, hitting its highest level since August 2023 ahead of the highly anticipated FOMC meeting. At press time, the premier cryptocurrency was trading 2.70% higher at $27,244.20. The digital asset has gained nearly 5% in the month to date and 64.71% in the year to date. Bitcoin’s total market cap has climbed by 3% over the past 24 hours to $531 billion, while the total volume of the asset traded over the same period increased by almost 100%.
Fundamentals
Bitcoin price was showing signs of recovery on Monday from the losses made in the last cryptocurrency market dip. Bitcoin flipped above the important level of $27,000, while Ethereum held above important support levels. The overall cryptocurrency market was in the green with the global crypto market cap up by 2% to $1.08 trillion for the day, while the total crypto market volume increased by more than 56%.
Even so, the Crypto Fear & Greed Index, which is a major measure of the crypto market sentiment by participants, was in a fear level of 38, almost like last week’s reading. This points to a continued decline in risk appetite by investors, which could prompt them to sell further.
Despite Monday’s bullish rally, interest rate decisions due later in the week may introduce downward pressure on cryptocurrencies. The US Federal Open Market Committee (FOMC) is slated to commence its…
Bitcoin price has been showing signs of a potential short-term recovery over the past few days and even tapped its highest level in two weeks, above $26,500. The premier cryptocurrency has gained nearly 2% over the past week, erasing some of the losses made in the previous days. Even so, the asset remains 9% below in the month to date. Bitcoin’s total market cap has climbed by more than 1% over the last day to $518 billion, while the total volume of BTC traded over the same period decreased by more than 9%.
Inflation Concerns
Like most major altcoins, Bitcoin price noted a slight bearish initial response to the US Consumer Price Index (CPI) data published on September 13. Data released by the Bureau of Labor Statistics (BLS) showed headline inflation by the CPI came in at 3.7%, ahead of the predicted 3.6% year-on-year and higher than July’s 3.2% rate. Annual core CPI, which excluded food and energy prices, decreased to 4.3% in August, in line with forecasts and down from July’s 4.7% reading.
The Producer Price Index (PPI) data released on Thursday suggested bearable levels of inflation following a monthly increase of 0.7% and an annual increase of 1.6% in August. The monthly reading was higher than the estimated 0.4% increase. The core PPI came in at 0.2% for the month, in line with analysts’ expectations.
Retail sales data also published on Thursday…
Bitcoin price has been struggling to break above the crucial resistance level of $26,500 for the past few days. The premier cryptocurrency has slumped by more than 13% in the month to date but remains 56% higher in the year to date. Bitcoin’s total market cap is a formidable $503 billion, down by more than 20% compared to its highest level so far this year of $612 billion. At the time of writing, the Bitcoin price was trading 1.50% lower at $25,797.25.
Fundamentals
Just like most altcoins, Bitcoin, the biggest cryptocurrency by market cap, has been in consolidation mode in recent trading sessions amid a strong bear market. Ethereum, the largest altcoin by total market cap, has been hovering below the important resistance level of $1,700 after facing a strong rejection at the level. According to Coinmarketcap, the global crypto market cap remains lower at $1.04 trillion, while the total crypto market volume increased slightly over the last day.
The Crypto Fear & Greed Index, which is a key measure of the crypto market sentiment by its participants, was at a fear level of 37 on Friday. This is a slight decline from the fear level of 40 recorded earlier this week. Additionally, it indicates that the risk appetite among investors has inched lower compared to last month’s neutral level of 49.
Focus will now be on the US Federal Reserve ahead of its two-day policy meeting…
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