Bitcoin Slips Below $27K as BTC Moving Towards Crucial Support

Pathik Bhattacharya
Pathik Bhattacharya Published on June 01, 2023 11:32 AM

In the days preceding the debt agreement, large Bitcoin investors cut their holdings and transferred assets to exchanges.

Bitcoin Slips Below $27K
Source: Unsplash

On Thursday, Bitcoin falls below $27K after continuous selling pressure knocked's BTC down. Bitcoin's value has dropped about 2.50% in the current cryptocurrency market, prompting substantial concern among investors and stakeholders. 

In recent weeks, cryptocurrency markets have struggled due to uncertainty over the US government's capacity to raise the debt ceiling and pay its financial obligations, as well as inflationary fears. As a result, Bitcoin fell into a negative trend during the month of May.

Additionally, the arrival of Bitcoin ordinals made the network congestion more sluggish. Transactions on the Bitcoin network getting par to the maximum block size limit. However, the increase in the popularity of Bitcoin inscription and BRC-20 is still keeping the price upheld.

Bitcoin Holders Shortens BTC Holding Amid Debt Deal

According to data from the on-chain data analytics firm Glassnode, significant bitcoin investors cut their bitcoin holdings in the days preceding the loan deal. Additional data suggest an increase in the amount of Bitcoin transmitted to centralised exchanges. What occurs next should be attentively studied as an indicator of overall sentiment.

bitcoin supply held by addresses

Source: Glassnode

On May 22, shortly before the debt agreement, the supply of bitcoin held by addresses with balances greater than 100,000 BTC fell from 663,306 to 543,958. A crucial question is whether the cut was motivated by short-term fiscal worries or by longer-term concerns about BTC pricing. While the number of addresses with more than 100K BTC is modest, whale behaviour can occasionally cause cascade impacts if they quit their positions.

Not all news is negative. In a fascinating trend, Inscription Transactions have risen to record heights on the #Bitcoin network. The increased use of BRC-20 tokens is largely responsible for the increase in Inscriptions.

According to new data, Inscriptions now account for 39% of all transactions on the Bitcoin network, showing a substantial shift in user behaviour. What's more, despite their growing popularity, Inscriptions account for 25% of all transaction fees produced.


Bitcoin Price Analysis

At the press time, Bitcoin (BTC) is trading at $26,845.89, with a 24-hour trading volume of $15,446,908,263. This indicates a -1.12% decrease in the last 24 hours and a 2.30% increase in the last seven days. Bitcoin has a market valuation of $520,532,281,286 and a circulating supply of 19 million BTC.

observing the Bitcoin daily chart suggests that BTC is making a Descending triangle pattern which causes future prices to tumble more. On the other hand, if BTC somehow cracks the uptrend and makes a breakout through the top of the pattern, the resulting move will be bullish. Investors could hope for better bullish pressure to uplift the current downfall.

In the current market condition, the 50-day MA is at $28,040 which is above the trading line and hence confirms the bearish dominance. Also, the 14-day RSI is at 44 which is a neutral region. 

bitcoin price chart

Source: TradingView


In conclusion, Bitcoin is facing a bearish stance right now. The US debt ceiling and Fed rate hikes are constantly pushing holders out of the crypto scene. The technical indicators are all pointing towards a bearish confirmation.

Related: Bitcoin Price Prediction 2023

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