Bitcoin Price Holds At $27,000 – $28,000 Likely Today For BTC?

May 17, 2023 CryptoExpert Market Analysis
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Bitcoin (BTC) price is showing a lack of buyer participation after crashing around 20% over the last month. The scarcity in bullish momentum has minimized any hope for a recovery rally in the near term. Nevertheless, there appears to be a slow but steady plan for a pullback, which if confirmed, could inspire a new wave of bullish momentum across the broader market.

Making A Case For Bitcoin’s Potential To Soar Despite Bearish Outlook

Bitcoin price has displayed massive volatility as indicated in the numerous fluctuations over the last few weeks. This came as the king crypto battled the waves of an eventful macroeconomic market as the United States gauged inflation levels.  Accordingly, as faith in the US Dollar (USD) continues to diminish, amid concerns of the implication of the debt ceiling standoff, Bitcoin price could soar.

The above narrative is founded upon the growing confidence in Bitcoin as macroeconomic conditions show depreciation. Recently, billionaire investor and hedge fund manager Paul Tudor Jones asserted his confidence in BTC during an interview with CNBC, saying:

I’m going to always stick with Bitcoin.

Although the statement in itself does not directly inspire a significant reaction from Bitcoin price action, it reflects the larger narrative of crypto being a bubble. Given that the founder of one of the largest investment firms in the US, his opinion on BTC bears weight. The opinion also aligns with the belief shared by several other institutions that have more faith in the flagship crypto than the USD currently.

Banks Bet On Crypto Amid Banking Crisis

Other than investment firms, banks are also wagering on digital currency amid the banking crises that continue to hodl traditional finance hostage while instilling fear among citizens. Evidence of this is the April case where the Bank of America and Fidelity Management acquired over $85 million worth of MicroStrategy’s MSTR shares.

The issuer of the biggest stablecoin in the world, Tether, also made a foray into this club when it reduced its bank deposits from $5.3 billion to $481 million in Q1 2023. This was in an attempt to minimize its bank risk exposure.

In exchange, Tether integrated Gold and Bitcoin into its asset reserves for the first time, with the investments accounting for about 4% and 1.8% of the USDT issuer’s entire reserves, worth approximately $3.2 billion and $1.45 billion, respectively.

Bitcoin Correlations Enhance Its Recovery Potential

The above comes, as users believe the best way to avoid the potential damages resulting from a financial crisis is to switch to an inflation hedge asset, and BTC makes the first choice. Furthermore, the people’s crypto has already earned its safe-haven status as it can offset any potential losses it may bear as a result of the macroeconomic conditions. This is thanks to its growing correlation with Gold.

The chart below indicates that after the Bitcoin bear market bottom that began around November 2022, there has been an increased correlation between Gold and BTC. Meanwhile, Bitcoin’s correlation with the stock markets has been on a steady decline over the past few weeks, with a definite miscorrelation with the Dollar Index (DXY).

The above instances point to Bitcoin price being able to display a recovery soon.

Bitcoin Price Has Massive Potential

Moving forward, Bitcoin price could make a comeback and restore above the June 2022 high around $30,000, marking a key psychological level on the four-hour chart below. The possibility of such a rally is high, though not near term, considering the digital asset boasts extremely high demand.

Based on a recent Bloomberg survey, Bitcoin has surpassed USD as the chosen asset for investment, a move attributed to the concerns surrounding the US national debt.

This is bullish for Bitcoin price, which is up by almost 70% since the onset of the year with the potential to manifest a bull market in 2024. Based on predictions by renowned trader Inmortal, the rest of 2023 could display a mid-cycle rally. If the prediction is true, then $32,000 and $37,800 could be the next major targets.

Bitcoin Price Prediction With $28,000 In Mind

At the time of writing, Bitcoin price is $26,957, a daily drop of 2% as the king crypto continues to navigate a bearish streak. BTC is standing on a critical support at $26,683, which came into play around May 11 to break the free fall. While the price action broke below this level, traders bought the dip and restored the king crypto above the $26,000 level.

Nevertheless, the overall outlook remains bearish, which means Bitcoin price was headed south before a possible recovery. If bearish pressure overpowers the bulls, BTC could fall toward the immediate support at $26,683, or extend a leg south to tag the $26,230 support level.

The downward-facing Relative Strength Index (RSI) and its position below the mean line support this bearish outlook. This shows bears are leading the market. Further, the Parabolic SAR, a trend-following indicator was also bearish after flipping above the Bitcoin price. For as long as this indicator tracts BTC from above, the flagship crypto would head south.

TradingView Chart: BTC/USDT 4-hour chart

On the other hand, if sidelined investors buy BTC at the current price, the surge in buying pressure could fuel a recovery rally, pushing Bitcoin price toward the $27,798 resistance level. A sustained buyer momentum, or increase thereof, could see the giant crypto flip this hurdle into support and use it to tag the $28,970 resistance level.

In a highly bullish case, Bitcoin price could reach the $30,441 resistance level, denoting a 15% climb from the current price.

BTC Alternative

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The AiDoge generator employs cutting-edge AI algorithms to develop memes that are contextually relevant, trained, and tested on extensive meme datasets and crypto news. This ensures high-quality, up-to-date memes.

The AI token is currently auctioning, with the presale raise recording $8.52 million thus far with a single token going for $0.0000308 USDT.

Noteworthy, the token price will increase to $0.00000312 in the next stage, which means investors have barely five days to buy AI at current rates.

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