BTC/USD Price Analysis – June 02, 2023

Daily Price Outlook

Bitcoin is currently trading at $27,005.52 per bitcoin (BTC/USD), with a market cap of $523.65 billion. The 24-hour trading volume stands at $14.07 billion.

Bitcoin has had a remarkable year, experiencing both ups and downs. One notable achievement has been its decoupling from traditional stock markets. However, recent events suggest a shift in this trend.

While the stock market faced significant bearishness towards the end of 2022, the price of bitcoin and the overall cryptocurrency market did not witness a corresponding decline. This initial indication of decoupling began in mid-April, with a negative correlation of 0.44 between the two markets.

Despite concerns about the debt ceiling, NASDAQ (NDX) has been on the rise, posting a 12% increase by June 1. The surge can be largely attributed to Nvidia’s success, as the chipmaker’s market capitalization has surpassed $1 trillion.

However, despite the positive performance of the stock market, bitcoin’s price has not seen significant gains. Market bearishness and investor actions have eroded the gains achieved during the March surge, which propelled Bitcoin from $20,000 to $30,900 by mid-April.

Since then, the price of Bitcoin has dropped below $27,000, leading to losses for many investors. Currently trading around $26,730, bitcoin faces increasing uncertainty. The lack of a positive correlation between the two markets further emphasizes the current state of both.

Despite the lack of momentum, bitcoin’s price is still being driven by bullish sentiment to break the $30,000 barrier. However, market activity suggests that a bull cycle may have ended, potentially leading to some sellers entering the market.

BTC/USD Price Chart – Source: Tradingview

BTC/USD – Technical Outlook

During the Asian session on Friday, the prominent cryptocurrency Bitcoin displayed a bullish surge after bouncing back from the 26,620 level. This development aligns with our previous price prediction, as we had anticipated this price movement in our recent Bitcoin forecast.

Analyzing the 2-hour timeframe, we observe the formation of hammer candlesticks near the 26,620 level. This pattern signifies a weakening bearish sentiment and suggests a potential opportunity for buyers to enter the market and acquire Bitcoin.

Looking ahead, Bitcoin is expected to face resistance around the 27,275 level, which coincides with the 61.8% Fibonacci retracement level that previously acted as a support level. It is anticipated that this resistance level will pose a barrier, hindering further upward movement for Bitcoin.

Additionally, crucial technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have crossed into the buying zone. This indicates a high likelihood of sustained upward momentum, particularly when examining lower timeframes.

It is essential to consider the presence of a downward trend line on the daily timeframe, which could potentially restrict Bitcoin’s ascent around the 27,275 level.

A decisive breakthrough of this trend line has the potential to trigger a further increase toward the 27,499 level, and it may even pave the way for Bitcoin to reach a significant target of $28,000.