As Bitcoin Investors are eagerly awaiting the next move for the leading cryptocurrency after it experienced a bounce-back from the $25,800 support.
With the shift in market sentiment, experts are now examining potential price targets and predicting the trajectory of bitcoin in the near future.
Stay tuned for the latest insights on bitcoin price predictions and where it could be headed next.
Bitcoin is trading at 26,829 with a gain of 1.88% on Saturday. After declining for 8 consecutive sessions, BTC/USD price finally started recovering losses mainly due to a price correction.
Fidelity Investments Director Highlights Bitcoin’s Impressive Rally
Jurien Timmer, Global Macro Director at Fidelity Investments, suggests that bitcoin is now closely correlated with gold, but he warns of a possible overvaluation to the $30,000 level.
Timmer’s analysis reveals two negative correlations: one of 88% between bitcoin and the two-year real TIPS yield, and another of 63% between bitcoin and the PCE-derived real rate.
Drawing from data since 2018, this correlation study compares bitcoin to gold in terms of their response to real rate factors. Timmer also highlights bitcoin’s role as a powerful inflation hedge, similar to gold.
According to Michael Saylor, the importance of bitcoin lies in its ownership by individuals
According to Michael SaylorMicroStrategy Executive Chairman One of the reasons individuals acquire bitcoin is because they see it as a moral obligation and an important asset to society.
Saylor argues that traditional money is in decline and highlights examples of financial turmoil in Africa, South America, and Asia.
According to Saylor, even well-established fiat currencies face uncertain futures. They believe that banks and fiat currencies are losing public trust due to rising inflation and a crisis of trust.
Saylor believes that their dwindling trust in traditional fiat currencies is driving people’s adoption of commodity money.
They argue that commodities such as gold, oil and property are not conducive enough for daily transactions when compared to alternative options.
Therefore, bitcoin serves as a commodity that is essential for all types of transactions and provides a solution to the world’s growing financial challenges.
These comments from Saylor helped bitcoin regain some of its previous losses on Saturday.
Bitcoin Liquidity Declining on Binance
Bitcoin liquidity on Binance has dropped significantly since the beginning of February, falling from around $45 million in early May to $16 million, according to Kaiko analyst Aubert.
The discontinuation of Binance’s 10-month zero-fee campaign for 13 BTC pairs was the primary reason for the drop in liquidity, prompting market makers to exit the platform.
Aubert further noted that the monthly trading volume for the most popular pair BTC-USDT dropped from $16 billion in March to $2 billion in April.
The drying up of liquidity has been particularly noticeable following the collapse of Bank Wave earlier this year, leading to the failure of key industry on-ramps such as Silicon Valley Bank and Silvergate to exit various startups including Ripple, Circle, Yuga Labs and others. Businesses have been affected.
Bitcoin Price Plunges Below $27K Amid Meme Frenzy and Binance Congestion
Bitcoin, the leading cryptocurrency by market cap, experienced a decline of over 6% over the past day, falling below the $27,000 mark.
The drop comes as investors contemplate the temporary suspension of bitcoin withdrawals on Binance due to the rising popularity of PEPE meme coin and congestion issues.
After Binance restored its service the next day, the disruption and the rising price of bitcoin raised concerns about the implications of the high volume of bitcoin transactions.
Reduced availability of bitcoin for short-term trading, as more are being held for longer periods, potentially leading to increased volatility or higher trading costs due to wider spreads.
With a fixed supply of bitcoin, there are fewer coins available for public sale. In the event of an increase in demand for bitcoin, this could put upward pressure on the price.
bitcoin price
Bitcoin It is currently priced at $26,800, and from a technical perspective, it has found support near the $26,300 mark, effectively stopping its decline.
With the $26,800 support level breached on the four-hours chart, it is now acting as a resistance level to become a potential hurdle for bitcoin.
Important technical indicators, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), are currently showing oversold conditions. This suggests that if bitcoin sustains above $26,000, there is a strong chance of a bullish recovery towards $27,800 or $27,500.
However, it is important to note that the 50-day exponential moving average (EMA) has formed a key resistance hurdle near $27,500, indicating that bearish sentiment remains intact.
It is important for bitcoin to monitor the $26,000 level as an important pivot point.
If bitcoin manages to stay above this level, it could potentially test the next resistance at $27,500 or $28,400.
On the other hand, if the decline continues, the next support is expected near the 50% Fibonacci retracement level of $25,300.
Top 15 Cryptocurrencies to Watch in 2023
on the team cryptonews Industry Talk has compiled a selection of the most promising cryptocurrencies for 2023. These cryptocurrencies display significant growth potential in both the short and long term.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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