Daily Price Outlook
According to CoinMarketCap, the price of Bitcoin experienced a 2.19 percent decline over the past 24 hours, reaching $26,176.35. Institutional investors in the United States have been withdrawing from Bitcoin, unlike in Canada.
Despite the significant increase in the price of Bitcoin since March, investor interest in the cryptocurrency has been steadily decreasing. This has created an opportunity for institutional investors, who are major players in the cryptocurrency industry.
Cathie Woods, the founder of investment management company ARK Invest, expressed concerns about the fading momentum of Bitcoin, attributing it to the regulatory system in the United States. Additionally, Justin Chapman, the global head of digital assets and financial markets at Northern Trust, noted the decline in institutional interest in cryptocurrencies.
Institutional investors have been consistently selling Bitcoin for the past five weeks, with outflows totaling around $33 million in the week ending May 19 and a yearly total of $112 million. The release of the Federal Open Market Committee (FOMC) minutes by the US Federal Reserve did not provide much momentum for the Bitcoin price.
Traders should be prepared for a possible drop in the Bitcoin price, potentially to the $25,000 level or even down to $24,000, if the FOMC considers future interest rate hikes.
BTC/USD Price Chart – Source: Tradingview
BTC/USD – Technical Outlook
During the Asian session, the leading cryptocurrency Bitcoin has found support around the $25,800 level. The formation of a hammer pattern on the four-hour timeframe above the $25,800 level suggests a potential bullish reversal, indicating weakening bearish momentum.
However, Bitcoin faces resistance around the $26,600 level, which is reinforced by the 50-day exponential moving average. This level previously acted as support but now serves as a resistance after being violated. On the downside, if Bitcoin breaks below the $25,800 level, it could target the $25,500 level.
The RSI and MACD indicators are in the oversold zone, indicating the possibility of a minor bullish correction. Therefore, it is important to monitor the $25,800 level, as a break above it could lead to a slight bullish correction towards the $26,400 or $26,600 level.
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