Bitcoin (BTC) made a significant move in the market as it broke the crucial $27,200 level.
This breakout has fueled speculation among traders and investors about the future direction of the bitcoin price.
One key indicator to watch in the coming days is the 50-day exponential moving average (EMA), which has the potential to act as a support level and trigger a potential bounce-off.
As bitcoin continues its price action, market participants are eagerly awaiting further developments to assess the strength of the current bullish momentum.
Paul Tudor Jones: Bitcoin Faces a “Real Problem” in the US
billionaire hedge fund manager Paul Tudor Jones believes Bitcoin is facing significant challenges in the United States due to the hostile regulatory environment.
Furthermore, their expectation of low future inflation dampens the positive outlook for the cryptocurrency.
With these factors in mind, Jones expressed skepticism about the attractiveness of bitcoin in the coming months.
The change comes after the regulatory landscape in the United States deteriorated FTX in November 2022Leading to caution around the cryptocurrency market.
Recent statements from hedge fund manager Paul Tudor Jones demonstrate a more cautious stance towards bitcoin than his previous comments.
He stressed the importance of holding cash while expressing confidence in the Federal Reserve’s ability to address concerns about inflation.
While Jones acknowledged the impending challenges for bitcoin, he also expressed confidence in its long-term potential.
He added that its main appeal lies in the fact that humans cannot manipulate its supply, which is why he intends to hold his bitcoin holdings.
Crypto Investment Funds Experience Outflows For 4th Consecutive Week
According to a report published by CoinShares on Monday, digital asset investment funds experienced net outflows of $54 million last week, marking the fourth week in a row.
The continuous outflow of such significant amount indicates that the negative sentiment is not limited to a few investors, rather more and more individuals are turning away from crypto investment funds.
The report noted that out of the $54 million that was moved out of the market, $38 million belonged to bitcoin-related products.
Over the past four weeks, the total outflow of bitcoin has reached $160 million, which is almost 80% of the total outflow of all cryptocurrencies during the same period.
As the net outflow of crypto investment funds continues to increase, the price of the cryptocurrency has seen a significant decline, falling from $28,000 to $26,000 within 10 days.
US debt ceiling negotiations and retail sales data weighed on the USD market
On Tuesday, the US dollar index (DXY), which measures the greenback’s value against a basket of six major currencies, rose 0.04% to 102.45.
Today, the US Economic Docket will release a highly impressive report on retail sales for the month of April. Retail sales are expected to see an increase of 0.8% in April, with core retail sales forecast to increase by 0.5%.
Also, on Tuesday, crucial US debt ceiling talks are set to begin between House Republicans and the White House.
President Joe Biden is scheduled to meet with the House Speaker Kevin McCarthy and other Congress leaders to discuss the debt ceiling.
On Monday, US Treasury Secretary Janet Yellen reiterated her concerns, saying the US could potentially default on its obligations as early as June if Congress fails to act.
The US dollar is taking some bets ahead of the outcome of US debt ceiling talks on Tuesday and the release of US retail sales data.
bitcoin price
Bitcoin It is currently trading at $27,126, experiencing a loss of 0.48 percent on Tuesday. After two days of recovery, the BTC/USD pair faced some pressure on Tuesday, influenced by the mixed sentiment prevailing in the market.
The $26,800 resistance, which has now turned into support, on the four-hours chart presents a potential reversal point for bitcoin.
Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), two important technical indicators, are currently suggesting that the market is moving into the buy zone.
This shows that if bitcoin manages to stay above the $26,800 level, there are high chances of a bullish rally towards $27,800 or $27,500.
It is worth noting that the 50-day exponential moving average (EMA) is acting as a key resistance near $27,500 to show that the bearish sentiment remains in the market.
Top 15 Cryptocurrencies to Watch in 2023
The Cryptonews Industry Talk team has compiled a list of promising cryptocurrencies for 2023 that show strong prospects. These cryptocurrencies demonstrate substantial potential for growth in the near and distant future.
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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