In recent trading sessions, bitcoin has experienced a decline of 2.5%, raising questions about the future trajectory of the leading cryptocurrency. As market participants analyze various technical indicators and market trends, it becomes important to understand the factors that could influence the next move of bitcoin.
In this bitcoin price analysis, we will discuss the current market conditions, key support and resistance levels, and possible scenarios for BTC price in the near future.
Fed rate hike expectations
US Personal Consumption Expenditure (PCE) index data from last Friday, which was expected to be the big macro event of the week, fell short of expectations. However, the dollar rose as data suggested the Federal Reserve would not suspend interest rate hikes. The dollar index (DXY) rose 0.15% to 101.81.
The Fed’s rate decision on May 3 is expected to increase interest rates by 25 basis points, from 5% to 5.25%. Furthermore, the probability of an increase in June increased to 27%.
If the Fed deviates from this strategy and suggests an increase of more than 25 basis points, it would be a strong hold indicating a stronger US Dollar, resulting in a drop in the price of BTC/USD. Therefore, investors are exercising caution as this macroeconomic event can lead to volatility.
Tesla Continues To Maintain Bitcoin Holdings Into Q1 2023
Tesla’s Q1 results show it maintained a steady bitcoin balance through the first three months of 2023. according to the company AnnouncementIt held the same amount of digital assets in the first quarter of 2023 as in the fourth quarter of 2022: $184 million.
The revelation that the corporation neither bought nor sold any bitcoin during the volatile quarter created a buzz in the bitcoin sector.
Additionally, this decision may indicate a long-term investment strategy or demonstrate confidence in the future development of cryptocurrencies. However, how the market will respond to Tesla’s stance is uncertain.
Going forward, many will be closely watching Tesla’s involvement in the industry, as it could significantly affect the overall direction of the crypto market and the price of BTC/USD.
bitcoin price
The BTC/USD pair is trading at $28,591, down 2.5% in a day. Bitcoin price declined after US PCE data raised hopes of another Fed rate hike in June. Bitcoin price declined dramatically from the 29,600 level to the 28,640 level. On the four-hour time frame, bitcoin declined below the 50-day exponential moving average, which was a support area near $29,000.
The formation of the candles shows that the bearish bias is dominating the market, and at the same time, the RSI and MACD indicators are in the sell zone, which favors the possibility of further downside in bitcoin price today.
On the downside, bitcoin is likely to find immediate support around the 28,000 level, which is being extended by a trendline that you can see on the 4-hour time frame. A break below this particular 28,000 level has the potential to propel BTC price to the next support level of 27,195.
Top 15 Cryptocurrencies to Watch in 2023
In addition to bitcoin, the market presents a range of promising cryptocurrencies, including upcoming altcoins and presale tokens with the potential for significant returns.
As a result, the Cryptonews Industry Talk team has compiled a list of the top 15 cryptocurrencies for 2023, each of which has demonstrated strong potential for both short- and long-term growth.
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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