BTC/USD Price Analysis – June 08, 2023

Daily Price Outlook

Bitcoin is currently trading at $26,367.11 per BTC/USD, with a market capitalization of $511.41 billion. The daily trading volume for Bitcoin amounts to $17.26 billion. The price of BTC to USD is updated in real-time, and on the previous day, Bitcoin experienced a 2.03% loss.

Although it is widely believed that the regulatory actions against cryptocurrencies in the United States will have minimal impact, Bitcoin’s price continues to trade below a slow-moving simple moving average (SMA), indicating a lack of buyer activity. This sentiment has also affected other top cryptocurrencies like Ethereum (ETH) and Ripple (XRP).

The current situation of Bitcoin’s price is still uncertain. Following the regulatory actions taken against Binance, Bitcoin experienced a 10% decline. However, it has rebounded and is currently finding support at the 50-day SMA at around $27,618. It is worth noting that this support level has been breached since May 7.

Unless bulls can turn the 50-day SMA into support, selling pressure from this level might prevent Bitcoin’s price from retesting the local multi-week support at $25,659. Breaking above the supply zone marked by the red band on the chart would require significant momentum. Bullish attempts are expected to face resistance due to selling pressure from this area.

Furthermore, declining momentum is indicated by the Relative Strength Index (RSI) heading south, suggesting that BTC investors and traders may need to wait longer for a clear direction.

Despite the SEC’s attempts to freeze Binance, the Bitcoin price has recovered to $27,000, relieving investors. Initially impacted by Bitcoin’s price drop, the market has bounced back, but the SEC’s actions against Binance continue.

At the time of writing, the price of one bitcoin is $27,365, offering reassurance to investors after it dipped to around $25,000 just a day ago. This rebound was necessary to prevent panic selling from triggering another price drop.

BTC/USD Price Chart – Source: Tradingview

BTC/USD – Technical Outlook

During the Asian trading session, Bitcoin experienced a bounce and found support around the $26,200 level. This support was indicated by the formation of doji and hammer candlestick patterns, signaling a potential weakening of the bearish sentiment and exhaustion among sellers.

The $26,200 level is proving to be a strong support zone for Bitcoin. However, there is a divergence between the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators. The RSI is in the oversold zone, suggesting a possible buying opportunity, while the MACD is indicating a buy zone.

Bitcoin is facing resistance near the 50-day exponential moving average, which is currently around $26,500. This adds further pressure to the cryptocurrency. It is advisable to wait for a breakout from the current trading range before considering any trading positions.

If Bitcoin breaks below the $26,200 support level, it could potentially lead to further downward movement towards $25,400. On the other hand, a confirmed breakout above the resistance level could provide selling opportunities, with potential targets around $24,750.

If Bitcoin manages to hold above the $26,200 support level, it could aim for resistance levels at $26,000 and $27,400. Breaking through the $26,500 resistance level is crucial for further bullish momentum.

The current candlestick patterns, particularly the hammer candle, indicate that investors are uncertain about the cryptocurrency’s trend. It is important to monitor any fundamental events that may impact the price of Bitcoin.