Daily Price Outlook
Bitcoin is currently trading at $26,425.15 per bitcoin (BTC/USD) with a market capitalization of $512.22 billion. The daily trading volume stands at $13.05 billion.
The price of Bitcoin is facing challenges in surpassing the $27,000 mark, as miners have been selling 1,000 BTC worth approximately $27 million. This bearish sentiment not only impacts Bitcoin’s price but also affects other cryptocurrencies. While concerns about the US debt ceiling persist, the stock market seems unaffected.
Bitcoin’s price has experienced a 3% decline over the past 24 hours, remaining below the $26,000 threshold. To prevent further losses or sustain their operations, miners have resorted to selling their reserves. Approximately 1,000 BTC was sold in a 24-hour period, totaling around $27 million.
The US debt ceiling plays a significant role in hindering the recovery of cryptocurrency prices. The market is apprehensive about the possibility of default, even as the Biden administration and Republicans strive to find a resolution.
On May 25, however, this fear appeared to have diminished as the stock market showed positive growth. Unless a crucial support level holds, Bitcoin’s price is expected to decline further.
BTC/USD – Technical Outlook
On Friday, Bitcoin, the leading cryptocurrency, exhibited a downward trajectory based on trading data from the UK market, failing to surpass the resistance level of 26,600 within the two-hour timeframe. The presence of doji and spinning top candles near the 26,600 threshold indicates a possible exhaustion of bullish momentum and a potential shift towards bearish sentiment.
As a result, Bitcoin’s immediate support is anticipated around the 26,000 level, and a breach below this level could steer the price towards the subsequent support level at 25,800.
Upon analyzing key technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), conflicting signals are observed. The RSI suggests a sell zone, while the MACD resides in a buying zone, displaying divergence.
Hence, it may be prudent to adopt a cautious approach and wait for additional Bitcoin candle closures below the 26,600 level before considering a sell position.
Alternatively, if Bitcoin successfully surpasses the 26,600 level, it has the potential to target the next objective at 27,000 or potentially even higher, around 27,400. Therefore, the suggested strategy for today is to seek a sell position below 26,600, with a take-profit target around the 26,000 level.