Bitcoin, the leading cryptocurrency, recently experienced a significant 10% decline in its price, raising questions about the key support level at $25,000. Investors and traders are keeping a close eye on the market to determine if Bitcoin’s price will find stability and bounce back from this crucial level. Market sentiment and current price action will play important roles in predicting Bitcoin’s future direction and its ability to regain upward momentum.
The UK tax authority, HMRC, is proposing new legislation that would grant it the power to seize bitcoins from businesses failing to meet their cryptocurrency tax obligations. This move, reported by The Telegraph on May 7, is part of a broader plan to update tax collection methods. HMRC predicts that if virtual currencies become increasingly used for online transactions, this could extend to business cryptocurrency wallets, adding further pressure on BTC/USD prices.
In the meantime, long-term holders of Bitcoin are accumulating more tokens, despite the cryptocurrency’s price decline. This diverges from the tech-heavy Nasdaq index on Wall Street that continues to rise, raising concerns among Bitcoin bulls. Markus Thielen, Head of Research and Strategy at Matrixport, emphasizes the need for caution given this trend. In a communication to clients, Thielen states that Bitcoin’s price should have surpassed $30,000 by now, considering its correlation with tech stocks. The absence of this movement serves as a warning for short-term traders and may result in a more significant disparity between the two assets.
Bitcoin’s price recently slipped below $27,000, and the latest banking crisis failed to drive up prices as investors struggle with recent failures in the industry and other macroeconomic worries. Despite the collapse of many US banks, Bitcoin dipped below $27,000 for the first time since March, reached below $26,300, and then plummeted once again. It seems that the US banking crisis has not sparked bullish momentum in BTC/USD prices.
Currently, Bitcoin is experiencing a significant bearish trend as it falls below the critical support level of $26,800. The breach of this level and the formation of a bearish candlestick pattern, known as the “three black crows,” indicates selling pressure in the market. This downward movement could extend further towards the next support level at $25,450 or potentially reverse towards the upside if it surpasses $26,800, targeting $28,300. Monitoring price action will be essential to determine the market’s direction in the coming days.
Cryptonews Industry Talk recently compiled a list of the most promising cryptocurrencies for 2023, demonstrating prospects for expansion in the immediate and long-term future. As industry players continue to assess market developments and trends, it will be crucial to analyze the current state of the crypto market and its potential implications on future growth and stability.
Source: Cryptonews
