Bitcoin Price Prediction: Analysts Foresee Significant Volatility in Near Future, with Potential Drop to $25,000
In this Bitcoin price prediction, we will delve into the perspectives of analysts who foresee significant volatility in the near future, with the potential for a drop to the $25,000 level.
As the cryptocurrency market constantly evolves and fluctuates, understanding the factors that influence price movements becomes crucial for traders and investors.
In this update, we aim to provide insights into the possible short-term trends and key levels to watch in the Bitcoin market.
Banking Collapse Spurs Bitcoin's Positive Momentum Recovery
Since the beginning of March, US regulators have closed and sold three mid-sized US banks: Silicon Valley Bank, Signature Bank, and First Republic.
The number of failures represents the highest to impact the US since the financial crisis of 2008.
In Europe, Credit Suisse, a major global player in financial turmoil, is being forced into a rescue plan with competitor UBS. Customers withdrew money in large quantities due to concerns about the security of their funds, which led to the crashes.
Banks in the USA, Europe, and the UK are collapsing, causing people's trust in them to wane and driving more people towards crypto because of its decentralized nature.
Furthermore, US Secretary Janet Yellen stated that the US would reach its debt ceiling in June, which added further pressure on the US dollar and supported BTC/USD prices.
Bitcoin punches its daily transaction record amid mounting interest in new network technology
Bitcoin recently set a new record for daily transactions as interest in Ordinals, a protocol that expands the applications of the blockchain, has grown. According to data from BitInfoCharts, the daily volume of Bitcoin transactions rose to 682,009 on Monday, surpassing the previous record of 568,300 set the day before. This figure was approximately 78,000 higher than the previous peak reached during the 2017 bull market.
A majority of these transactions were driven by Ordinals, as it allowed users to embed data into Bitcoin's blockchain, similar to NFT minting. The convenience of investing in cryptocurrency and conducting international payments contributed to an expanded user base, leading to an increase in transactions.
Bitcoin Gaining Attention Ahead of Election Cycle
Bitcoin appears to have received additional support from recent comments made by US Presidential candidate, Robert F. Kennedy Jr. The Democratic candidate believes that the turmoil in the US banking sector is due to the "war on crypto."
According to him, the SEC and FDIC have no legal authority to wage additional war on crypto, which is harming the country's major banks. He further stated that Bitcoin critics who argue that its energy usage is detrimental are simply misunderstanding the concept. The political attention that crypto and Bitcoin are garnering ahead of the upcoming election cycle is also contributing to the market's value.
BTC/USD is trading at $28,689, experiencing a 2.33% increase on Wednesday over the past twenty-four hours. Monday witnessed an all-time high in the daily volume of Bitcoin transactions.
Bitcoin's price has surged due to renewed investor confidence following recent bank failures.
Currently, Bitcoin is encountering significant resistance around the $28,750 level, which is reinforced by a double top pattern.
A bullish breakout above this specific level has the potential to drive Bitcoin's price towards the next target level of $29,300. If the upward momentum continues, we may see BTC aiming for the next target of $30,000, which also acts as a psychological resistance level.
In the four-hour chart, Bitcoin has dropped below the 50-day exponential moving average, which had previously functioned as a support zone around the $28,800 level.
The candlestick patterns signify a dominant bearish sentiment in the market, with the RSI and MACD indicators implying a potential downtrend for Bitcoin's price today.
Bitcoin might find immediate support near the $27,600 level, marked by a trendline visible on the 4-hour chart. If the price breaches this critical $27,600 level, BTC could be on its way to the next support level at $27,200.
Top 15 Cryptocurrencies to Watch in 2023
Besides Bitcoin, the market features an array of promising cryptocurrencies, encompassing up-and-coming altcoins and presale tokens that hold the prospect of significant returns.
As a result, the Cryptonews Industry Talk team has assembled a list of the top 15 cryptocurrencies for 2023, each demonstrating considerable potential for growth in both the short and long term.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.