Bitcoin
Bitcoin Price Retests Crucial Support at $26,500 as Regulatory Concerns Intensify
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 Trading Commission (CFTC).
Notably, Bitcoin has been experiencing congestion on its network for the past few days, prompting Binance to halt the withdrawal of the asset twice in 24 hours earlier this week. The halt saw transaction fees surge and while they are coming down, they remain elevated.
The US dollar was headed for its biggest weekly gain since February on Friday amid uncertainty in the US debt ceiling and monetary policy. At press time, the US dollar index was trading 0.68% higher at 102.2589. The US Treasury yields were also in the green on Friday with the 2-year Treasury yield up to 3.991% and the yield on the 10-year Treasury yield at 3.463%.
Bitcoin Price Outlook
The daily chart shows that the Bitcoin price has been in a freefall in the past week, dropping below the crucial level of $28,000. BTC hit an intraday low of $25,811 earlier on Friday, below the crucial support level of $26,500. The coin has remained below the 50-day exponential moving average and simple moving average. Its Relative Strength Index (RSI) has moved lower, suggesting an increase in selling pressure. The Moving Average Convergence Divergence (MACD) indicator has also remained bearish.
Consequently, the Bitcoin price is likely to fall further in the ensuing sessions as sellers eye the next support levels at $25,265.50 and the 200-day EMA. On the flipside, a move past the 50-day EMA will invalidate the bearish 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 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…
Bitcoin price inched lower on Wednesday as markets chewed on the Fed’s latest interest rate decision. At the time of writing, Bitcoin price was trading slightly lower at $28,508.98. The asset’s total market cap rose slightly for the day, while the total volume of BTC traded slipped by nearly 8%.
Fundamentals
Bitcoin price was changing hands at $28,500 on Wednesday as investors digested minutes from the Federal Open Market Committee (FOMC) two-day monetary policy meeting. According to the released minutes, the committee decided to raise the target range for the federal funds rate to 5% to 5.25%.
Economic activity in the first quarter expanded modestly, while job gains have been robust in recent months. The unemployment rate remained low in the quarter, while inflation rates remained elevated. The FOMC seeks to achieve maximum employment and inflation at the rate of 2% in the long term.
In assessing the appropriate stance of monetary policy, the Committee said that it will continue to monitor the implications of incoming information for the economic outlook. The Committee stated that it would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.
US Treasury yields fell on Wednesday on the back of the hiked fed rates. The yield on the 2-year Treasury yield fell to 3.935%, while the 10-year Treasury yield dipped to 3.401%. The US…
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