The price of Bitcoin (BTC) remained relatively stable on May 18, showing only a slight change compared to the previous day’s close, as traders eagerly awaited more clarity on the United States’ burgeoning debt crisis. Following U.S. President Joe Biden’s expression of confidence in resolving the deadlock with Republicans to avoid a potential default, market sentiment experienced a boost, resulting in Bitcoin experiencing a modest gain of 1.5%. This brought its value to over $27,400 on May 17.
Tether’s recent announcement of dedicating 15% of its monthly operational profits towards purchasing Bitcoin may have also contributed to the cryptocurrency’s recovery. However, despite its year-to-date growth of 65%, Bitcoin is still down 60% from its all-time high of $69,000 set in November 2021.
On the other hand, a formidable hurdle that Bitcoin must overcome is the strengthening U.S. dollar. The greenback has recently gained traction due to robust U.S. economic data published earlier in the week, which brings a potential interest rate hike in June back into consideration. Consequently, the probability of another rate hike rises, lifting U.S. Treasury yields, and in tandem, the U.S. dollar’s appeal. Since Bitcoin typically trades inversely to the U.S. dollar, its value could come under threat if the dollar continues to strengthen.
BTC’s technical price indicators are also leaning towards a bearish outlook, with a possible dip to $25,000, a crucial psychological threshold, by June. Skeptics point to strong selling pressure from Bitcoin’s 50-day exponential moving average (50-day EMA) around $27,670, which could drag the BTC/USD pair down towards its 200-day EMA close to $24,860.
Nonetheless, a successful leap above the 50-day EMA could render the bearish speculation invalid and set Bitcoin on a course to reach $30,000 by June.
While the future of Bitcoin remains uncertain, the eventual outcome hinges on various factors such as U.S. economic performance, global market fluctuations, and an ever-changing political landscape. Therefore, readers are encouraged to conduct their own thorough research before making any investment or trading decisions.
Source: Cointelegraph
