BTC/USD Price Analysis – May 17, 2023
Daily Price Outlook
The cryptocurrency market experienced a downturn today as investors expressed concerns over increased regulatory scrutiny and the ongoing debate regarding the debt ceiling. Bitcoin's price dropped to $26,970 on May 16, hitting a 7-day low and triggering fears of further decline.
Similarly, ether (ETH) faced a decline, falling to an intraday low of $1,804 on the same day, following its earlier rise above $2,100 after the Shapella upgrade. These downward movements occurred amidst a broader contraction in digital asset markets, with trading volumes surpassing $200 million.
The dip in cryptocurrency prices coincided with the response from SEC lawyers to Coinbase's objection, seeking clarification on the classification of tokens as securities. The SEC Chairman, Gary Gensler, reinforced the view that many crypto tokens are securities during the 27th annual Financial Markets Conference, highlighting concerns about non-compliance and mixing customer funds among certain business practices.
Furthermore, Democrats in the United States Congress are aiming to strengthen the SEC's authority over cryptocurrencies, potentially leading to a broader categorization of tokens as securities. Gensler emphasized that even network nodes would need to comply with securities regulations if they facilitate transactions involving securities.
In other news, President Joe Biden held discussions with Congressional leaders regarding the debt ceiling issue. Treasury Secretary Yellen previously warned that the Treasury could run out of funds to meet government debt obligations as early as June 1.
Although reaching an agreement before the deadline appears challenging, it is not entirely improbable. However, the ongoing negotiations are likely to introduce further volatility as both parties delineate their objectives while working toward a solution.
BTC/USD – Technical Outlook
During the Asian session, the price of Bitcoin is trading around the $27,000 level. On the two-hour timeframe, Bitcoin has formed a descending channel, providing support around the $26,850 level. Additionally, a double bottom pattern may act as a support level of around $26,750. This range can serve as a pivotal point for Bitcoin, as long as it remains above $26,750 and within the channel, suggesting the possibility of a bullish trend continuation.
They are in neutral territory when analyzing the RSI and MACD, both leading technical indicators. Bitcoin's price fluctuates above and below the 50-day exponential moving average, indicating mixed sentiment among investors. Thus, today's pivotal point will likely be at the $26,750 level.
If Bitcoin manages to hold above this level, it is advisable to consider buying positions with targets set at $27,250 and potentially $27,650. On the downside, a break below $26,750 could lead to a decline towards $26,200.
Related:
* USD/JPY Price Analysis – May 17, 2023
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