BTC/USD Price Analysis – April 25, 2023

Daily Price Outlook

The BTC/USD currency pair has decreased by 0.91% over the past 24 hours, currently trading at 27,409. The value of Bitcoin dropped due to investor concerns over interest rates and the uncertain regulatory environment for cryptocurrency in the United States, which led to a risk-averse market sentiment.

US Crypto Regulation in a State of Uncertainty

Cryptocurrencies started the week in a bearish trend after a significant sell-off during the weekend. The reason for the drop is due to the increasing regulatory scrutiny on crypto-related businesses in the US amid regulatory uncertainty. This crackdown has caused the price of BTC/USD to decrease dramatically.

Coinbase CEO, Brian Armstrong, expressed his frustration with the unclear cryptocurrency regulations in the US and stated that the exchange might leave the country if the legal environment doesn't change. Armstrong would prefer to conduct business in the UK, where only one regulator takes a uniform approach.

Coinbase filed a lawsuit on April 24 asking the US SEC to respond to its earlier request for rulemaking to clarify cryptocurrency restrictions, which the exchange submitted in July last year.

According to billionaire tech investor and Bitcoin enthusiast, Chamath Palihapitiya, US policymakers have killed the cryptocurrency industry with excessive regulations.

US Economic Indicators Cause Investor Concerns

The Dallas Fed Manufacturing Index report was released on April 24, Monday, indicating a decline from -15.7 in March to -23.4 in April, which is lower than the expected -14.6. This indicates a significant decrease in the state of the US economy in April.

These poor economic statistics caused investors to adopt a hawkish attitude toward the Federal Reserve's monetary policy. The CME FedWatchTool recorded an 84% probability of a 25-basis-point interest-rate increase in May and a 24.7% chance of a raise in June.

The Dollar Index (DXY) saw a slight gain of 0.02%, trading at 101.37, amid speculations of another rate hike. As a result of these US economic indicators, BTC/USD experienced a decline as investor risk aversion increased.

Daily Technical Levels

Support Resistance

1.0987 1.0996

1.0983 1.1001

1.0979 1.1005

Pivot Point: 1.0992

BTC/USD – Technical Outlook

Bitcoin is currently facing bearish signals below the $28,000 mark, and it needs to surpass this level to avoid more losses. After finding support near the $27,200 level, BTC experienced an upside correction but its progress was limited. It tested the $28,000 resistance zone but failed to break it and dropped below the $27,200 support zone to test $27,000.

It has since attempted another upside correction and climbed above the 50% Fib retracement level. However, it is still trading below the 100 hourly

Simple moving average and $27,800. A connecting bearish trend line is forming with resistance near $27,650, and immediate support is at $27,100. If BTC fails to clear the $27,650 resistance, it could continue to move down with major support at $27,000, followed by $26,500 and $26,000.

On the upside, a close above $28,000 could start a decent increase with the next major resistance sitting near the $28,400 and $29,200 zones.