Due to US economic uncertainties and high crypto scrutiny in the US, Bitcoin again succumbed to its critical support.
Bitcoin price prediction reveals that BTC is again experiencing bearish movement recently. Bitcoin again fell to test another critical support at $25,878 which is a dead point for BTC. If prices fell anymore than this, a downturn to $23K is possible. After the Three month-long bull run and consolidation due to the US banking collapse, BTC is again dropping down due to various economic reforms.
One of the main reasons at the moment is the US Economic crisis and the Debt ceiling. After two weeks of stagnation, crypto markets finally experienced a slight uptick on Wednesday, as investors concerned about UK inflation and the latest Janet Yellen warning about the US debt ceiling deadlock drove prices tumbling.
The release of the most recent Federal Open Market Committee (FOMC) minutes later in the day, which showed US central bankers divided on whether interest rate hikes should continue, did little to bolster market confidence. Let's see how Bitcoin price prediction will be impacted after this news.
Former Reserve Bank of India governor Raghuram Rajan is concerned about a ticking time bomb, long-term issues, the domino effect, and riskless capitalism in relation to banks in the world's largest economy, which has seen three lenders fail since March.
Rajan stated that the US authorities' reaction to the bank collapses was fairly anticipated, in the sense that they are highly concerned about a cascade of failures and panic.
"I think the short-term problem has been dealt with by the implicit insurance of all deposits. But the longer-term problem still exists," Rajan stated.
This statement signifies how US Banking systems are depleting day by day and hence, the country with almost 60% of people putting their money into stocks, possibly turning towards Bitcoin as it happened earlier in January this year.
At the press time, Bitcoin (BTC) is trading at $26,256.25, with a 24-hour trading volume of $17,179,673,144. This indicates a -1.82% down in the last 24 hours and a -3.70% drop in the last 7 days. Bitcoin has a market valuation of $508,925,128,820 with a circulating supply of 19 million BTC.
On May 23, Bitcoin touched the 20-day exponential moving average (EMA) of $27,278 but the bulls were unable to break through this resistance. Failure to do so prompted bears to sell aggressively on May 25.
The bears are attempting to keep the price below the immediate support level of $26,631. If they are successful, the BTC might fall to the critical support level of $25,250. This level could see another fierce battle between bulls and bears.
Further, the 14-Day RSI is at 37 which indicates that at the moment the bears are dominating the market. The price is however in a neutral zone. Any uptick or downtrend could cause severe volatility in BTC.
In conclusion, Bitcoin is facing a rough time due to various US economic uncertainties as well as the after-effect of the Banking collapse. The technical indicators are indicating a possible "Buy" opportunity but the market sentiment remains negative.
Get in TouchContact Us