Bitcoin
Bitcoin Price is Rallying off the Back of Reignited Banking Fears and Recession Jitters
Bitcoin price has bounced back from its recent downtrend, building on its previous gains. Bitcoin, the largest cryptocurrency by market cap, has bounced back above the crucial support of $28,000 and is currently headed to $29K. The asset’s total market cap has increased by more than 2% over the last day to $560 billion, while the total volume of the coin traded climbed by 89.40%.
Fundamentals
Bitcoin price has been on an upward trajectory for three consecutive days as disappointing Wall Street earnings reignite banking fears. Markets have been in jitters for the past few days, as major US banks report an underperformance in the March quarter. Earlier on Tuesday, the shares of the First Republic Bank dipped by more than 50% after the bank reported a $104.5 billion plunge in deposits in the first quarter. Rumors of a potential seizure of the bank by the Fed have also buoyed Bitcoin’s recent rally.
The global crypto market cap has increased over the last day to $1.20 trillion, while the total crypto market volume jumped by more than 78.74%. Bitcoin’s dominance has also increased in the past 24 hours to 46.90%.
Markets have also been wary of a potential global recession this year. The US Federal Reserve recently predicted a recession as the IMF hinted at a slowdown in global economic growth. According to the Fed, the banking debacle will likely push the country’s economy into a recession. The US CB Consumer Confidence Index fell in April to 101.3 as the Expectations Index also slipped to 68.1, suggesting a recession within the next year.
The global crypto market cap has increased over the last day to $1.20 trillion, while the total crypto market volume jumped by more than 78.74%. Bitcoin’s dominance has also increased in the past 24 hours to 46.90%.
All eyes will be on the US Gross Domestic Product (GDP) for the first quarter later in the day as investors gauge the country’s economic sentiment. Markets will also be closely watching the Fed’s two-day policy meeting slated for next week. Markets are pricing in a 25-basis point interest rate hike for May.
Bitcoin Price Analysis
The daily chart shows that the Bitcoin price has been on an upside correction for the past few days, flipping the important level of $28,500. The crypto leader has increased by nearly 6% in the past three days and is up by 75% in the year to date.
The digital asset is hovering above the 50-day and 100-day moving averages, as well as the 50-day and 200-day exponential moving averages. BTC has also moved above the 50-day and 100-day simple moving averages, while its Relative Strength Index (RSI) ticks higher into the neutral zone.
Therefore, a move past the key level of $29,000 will see the Bitcoin price continue its upside correction to $30,500. If this happens, the next target for the bull market will be the resistance at $35,000. However, a move below the 50-day MA will invalidate the bullish thesis.
BTC Price Chart
Bitcoin price was trading higher on Tuesday, building on gains made in the previous trading session. At the time of writing, Bitcoin was trading 1.04% at $27,129.92 after clearing the crucial $27,000 level. The coin’s market cap has risen higher to $526 billion over the last day, while its total volume edged higher.
Macroeconomic Concerns
Data by Coinmarketcap shows that the global crypto market cap has increased by more than 1% over the last day to $1.13 trillion, while the total crypto volume jumped 20% over the same period. Bitcoin’s dominance also increased over the day.
Bitcoin’s price was gaining on Tuesday on the back of greenlight of some retail crypto trading by Hong Kong. Hong Kong’s Securities and Futures Commission announced on Monday that it would allow retail traders to trade certain crypto assets beginning June 1 on registered platforms. Markets widely anticipated the move amid Hong Kong’s broader efforts to become a global crypto hub.
Even so, Hong Kong’s new guidelines are in sharp contrast with China’s ban on crypto trading in 2021, as well as the continued US regulatory crackdown on cryptocurrencies since the fall of crypto exchange FTX. The Securities and Futures Commission of Hong Kong (SFC) has already licensed two digital asset platforms, Hash Blockchain and OSL.
Despite Hong Kong’s move to support crypto assets, concerns about the Federal Reserve’s monetary policy outlook have continued to weigh on markets…
Bitcoin price was headed for its worst week since November 2022 on Friday as volatility, buoyed by low liquidity continued to outweigh crypto markets. Bitcoin has dropped below the crucial support level of $26,500, changing hands at this level. The asset’s price has dipped by more than 11% in the past week, while its total market cap inched lower to $516 billion.
Fundamentals
Bitcoin price has been on a downward trend for seven consecutive days amid congestion in the network’s system and the regulatory crackdown on cryptocurrencies. The digital coin has been struggling to gain bullish momentum for the past few days. Bitcoin is currently up by 60.54% in the year to date, but its prices have remained volatile.
The crypto market has been battling low liquidity, regulatory crackdown, and macroeconomic concerns. Data by Coinmarketcap shows that the global crypto market cap has slipped to $1.11 trillion, down from $1.27 trillion earlier in March. Bitcoin’s dominance has also inched lower in the past few days.
The regulatory crackdown on cryptocurrencies has ramped up since the fall of crypto exchange FTX. Ripple Labs has been in a lawsuit against the US Securities and Exchange Commission (SEC) over the last year over concerns about its native coin XRP. Additionally, SEC recently warned Coinbase over potential securities law violations. Binance, the largest cryptocurrency exchange platform, was recently accused of violating trading rules by the Commodity Futures and…
Bitcoin price has been on a downward trajectory for five consecutive days on the back of network congestion on the asset’s blockchain. The asset has been changing hands at $27,600 for the past few days. Bitcoin’s total market cap has crashed to $533 billion, while its total volume inched lower. BTC has dropped by nearly 9% in the past five days and 3.90% in the past week.
Fundamentals
Bitcoin price has been in a five-day freefall, dropping below the crucial level of $28,000 as the coin’s network works through congestion. Bitcoin, the largest cryptocurrency by market cap, as well as Ethereum, has been struggling to gain bullish momentum for the past few days. Ethereum, the largest altcoin by market cap, has dropped below the important $1.9K level.
Binance, the largest cryptocurrency exchange, moved over $4 billion worth of Bitcoin earlier this week to its crypto wallets. This high volume of transactions resulted in congestion on Bitcoin’s blockchain, prompting Binance to halt Bitcoin withdrawals on its platform twice in 24 hours. Additionally, the congestion also saw transaction fees jump to their highest level in six years. Binance announced that it would work to enable the Bitcoin Lightning Network which will help in such situations in the future.
Focus has now shifted to the US Consumer Price Index (CPI) data slated to be published later on Wednesday. The reading is expected to show that the monthly…
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