BTC/USD Price Analysis – May 24, 2023

Daily Price Outlook

Following a bullish takeover in Tuesday’s trading session, the price of Bitcoin (BTC) has exhibited an upward movement. However, the 50-day exponential moving average (EMA) at $27,525 is currently acting as a resistance level for Bitcoin, which is currently priced at $27,291.

If the price manages to surpass the psychological barrier of $27,680 and solidify it as a support level, the odds of further gains will increase as more investors enter the market.

In an optimistic scenario, if purchasing pressure continues to rise above the aforementioned level, the price of Bitcoin could potentially reach the $28,571 resistance level, and in an even more positive outcome, it may climb to $30,441, representing a 10% increase from the current level.

The ongoing impasse over the US debt ceiling has raised concerns about its impact on the crypto market, as both Bitcoin and altcoin volumes have declined. The potential consequences of a debt default by the US government have instilled fear in the stock market, as the Biden administration strives to find a resolution with Congress.

If a debt default were to occur, a White House assessment predicts the loss of over 8 million jobs, which would have a detrimental effect on both traditional markets and the cryptocurrency market.

With the US accounting for 10% of global cryptocurrency users, approximately 45 million users out of the total 420 million would be affected, posing a significant risk as individuals facing unemployment may be compelled to sell their holdings prematurely.

As a result, the crypto market is currently experiencing low trading activity, with Bitcoin and Ethereum volumes reaching their second-lowest levels since September 2019, according to Sentiments observations.

BTC/USD Price Chart – Source: Tradingview

BTC/USD – Technical Outlook

Engulfing candles and a probable reversal signal are currently giving Bitcoin a negative outlook. The $26,600 price point is acting as support, with additional backing from a trendline. A closure over $26,600 would signal a positive trend and prevent a further drop to $26,500 or possibly $22,200; however, buyers should proceed with caution and wait for confirmation from numerous candle closes before acting.

If Bitcoin prices drop below the $27,000 support level, the existence of the 50-day exponential moving average will add to the gloomy attitude. A bearish market mood is indicated by a Relative Strength Index (RSI) of 37 and a Moving Average Convergence Divergence (MACD) of less than zero. It is vital to keep an eye on the $26,600 level, as a closing below it could signal further weakness. On the other hand, if the price manages to end the day above $26,600, bulls can consider opening long positions with $27,000 or perhaps $27,400 as their ultimate goal.

It’s important to keep an eye on $27,200, as a move above could meet resistance at $27,800.