Bitcoin
Bitcoin Price Shies Away From 10-Month High Amid a Stronger US Dollar and Surging Oil Prices
Bitcoin price started the new month in the red despite ending the first quarter of the year higher after navigating its first banking fiasco and another regulatory crackdown. Even so, BTC still hovers around its highest level this year. At press time, Bitcoin, the largest cryptocurrency by market cap, was trading at $28,258.20, shying away from its intraday high of $28,500.99.
Fundamentals
Bitcoin price, as well as other cryptocurrencies, slipped on Monday but remained near recent highs. In the past 24 hours, Bitcoin price has been changing hands at around $28,300. Its market cap has also slipped over the same period, while the total volume of the coin traded edged higher.
Markets have been reacting to the latest announcement by the Organization of Petroleum Exporting Countries (OPEC) and its allies. OPEC+ announced on Sunday that it would slash its output by 1.16 billion barrels per day starting from May 2023. In the announcement, Saudi Arabia stated that the cuts would stabilize the oil market.
The announcement saw the oil prices surge by more than 5%, with US West Texas Intermediate (WTI) crude futures jumping by 6% to $80.27 per barrel and Brent crude futures climbing by 5.88% to $84.58 per barrel. However, the Bitcoin price inched lower on the back of the announcement, hitting an intraday low of $27,560. The soaring oil prices threaten to stoke inflationary pressures, prompting the Fed to impose more aggressive measures. Higher inflation rates would stir up pressure on risk-sensitive assets such as stocks, and especially cryptocurrencies such as Bitcoin.
The US Dollar Index has recently shown signs of growth, hinting at a strengthening of the United States’ official currency. A stronger US dollar can create headwinds for risk assets such as digital assets. An increase in the valuation of the US dollar could improve investors’ confidence in traditional financial institutions, shifting their focus away from risk assets. Consequently, this would lead to a decrease in demand for cryptocurrencies such as Bitcoin, prompting a drop in their prices.
Bitcoin Price Analysis
The daily chart shows that the Bitcoin price has been cruising slightly below its 10-month high for the past few days. Even so, the crypto leader has managed to remain above the 25-week and 50-week moving averages, as well as the 50-day and 200-day exponential moving averages.
Its Relative Strength Index (RSI) has inched lower but remains above the neutral zone. The Moving Average Convergence Divergence (MACD) indicator is bearish. As such, the Bitcoin price is likely to decline slightly before bouncing back higher. Even so, I expect the BTC price to remain above the crucial support level of $26,500.
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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