Technical Analysis

BTC/USD Price Analysis – June 01, 2023

By LonghornFX Technical Analysis
Jun 1, 20233 min
Signal 2023 05 25 122632 002

Daily Price Outlook

The current market capitalization of Bitcoin stands at $520.59 billion, with each Bitcoin priced at $26,849.15. The daily trading volume amounts to $15.57 billion. The price of BTC to USD is continuously updated, and it has experienced a 0.75 percent loss in the past day.

In May, the price of bitcoin (BTC) closed the month at $27,210, resulting in a negative return of -6.92% for the month. This decline marked the end of a four-month bullish streak that drove the 2023 price surge.

During May, there was significant selling pressure on the price of Bitcoin, leading to an 8.75% drop from its local peak of $29,820. This resulted in the conclusion of BTC’s four-month winning streak, with a negative return of 6.92% for the month.

As expectations for a bull run diminish, more investors may join the selling trend, potentially triggering a sell-off. On the other hand, if the price of Bitcoin stabilizes, it may lead to boredom for investors and day traders. It is essential to examine historical data over a significant time frame as it reflects investor sentiment, which often exhibits cyclical movements.

Historical data shows that November has had the highest average return for Bitcoin prices over the past 14 years, at over 38%, followed by 36% in April and 26% in October. Quarters one and four generally show the best results regarding returns on the price of Bitcoin. This suggests that investing in cryptocurrencies is often more favorable in the first and third quarters.

Direction of the Bitcoin Price Remains Uncertain

According to the previous analysis, the Power of Three (PO3) configuration for the Bitcoin price is on the verge of being activated. However, BTC needs to turn the $27,514 support level into a resistance level for the pattern to result in a downward move.

If this confirmation fails, a rebound is possible, especially considering the imminent crossover of the Awesome Oscillator above the zero line and the recent flip of the Relative Strength Index above the mean line. The bounce off the $27,514 support level may target the buy-stop liquidity above the swing highs formed on April 26 and May 6, as both momentum indicators indicate an increase in bullish sentiment.

Investors can anticipate that the bitcoin price will reach the psychological milestone of $30,000 under this scenario.

The future direction of the bitcoin price will be determined by its price action. A break of the $27,514 support level would signal a bearish outlook. In such a scenario, the PO3 arrangement may trigger a sweep of the $25,296 level to target sell-stop liquidity.

BTC/USD Price Chart – Source: Tradingview

BTC/USD – Technical Outlook

The price of Bitcoin is displaying a slightly bearish trend as it hovers around the 26,850 level. On the four-hour timeframe, Bitcoin has already reached the significant 78.6% Fibonacci retracement level and has declined towards the next support level at 26,650.

Breaking above the 26,650 level could potentially initiate a bullish reversal, as we previously discussed. The presence of a bearish engulfing candlestick below the 50-day exponential moving average suggests that bears are currently dominating the market.

However, as long as the price remains above the 26,600 level, there is a possibility of a reversal and an upward movement towards resistance levels at 27,300, 27,500, or even 28,000. On the downside, if BTC drops below 26,600, the next target could be around 26,000.



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