Bitcoin’s price has recently been experiencing a downward trend, threatening to break the crucial support level at $26,800, with a potential target of $26,000. This bearish momentum in the market is raising concerns among investors and traders. The vital support level at $26,800 determines Bitcoin’s short-term direction, and a decisive breakout below this level could lead to further downward pressure towards the $26,000 level. As Bitcoin navigates this critical juncture, market participants are keeping a close eye on the price movements and indicators for potential signals of a trend reversal or continuation.
Cathie Wood, the founder of ARK Investment, has expressed concerns about the United States losing its grip on the Bitcoin movement due to its regulatory system. She believes that the Securities and Exchange Commission (SEC) plays a significant role in shaping the regulatory landscape for cryptocurrencies in the country. Wood criticized the SEC’s approach to treating digital assets as securities, as this stance may hinder their potential. Wood’s remarks positively impacted Bitcoin prices recently, contributing to its upward movement.
An interesting trend among Bitcoin owners has been revealed by Glassnode’s statistics. The proportion of the Bitcoin supply that has remained unchanged for at least a year has reached a record high of 68%. This suggests that most Bitcoin users are long-term investors who are not swayed by short-term price fluctuations. This trend of increased hodling and reduced selling pressure on Bitcoin encourages its growth and acceptance within the market.
Following Ethereum’s impressive $393 million NFT volume in the 30 days starting from April 23, surpassing Bitcoin’s trading volume, Bitcoin ordinals have now taken the second spot. A surge in BRC-20 volumes has been attributed to traders seeking to capitalize on recent excitement. However, if gains begin to slow down, trading activity for BRC-20 tokens may decrease. While the NFT market for Bitcoin is expanding, there has also been a renewed focus on trading meme coins on the blockchain.
The cryptocurrency market received a boost as Hong Kong announced it would allow retail trading of specific digital assets starting June 1 through registered trading platforms. This announcement sparked optimism in the market, potentially increasing the volume of retail investors and helping cap Bitcoin’s losses.
Although Bitcoin’s price may seem bearish at the moment, the fundamentals remain supported. Monitoring the $26,600 level is crucial, as a close below it could lead to more downside. Conversely, a close above $26,600 opens opportunities for long positions, targeting $27,000 or higher at $27,400. Despite the potential for fluctuations, Bitcoin owners seem to maintain optimism in its long-term value appreciation, indicating that the community remains confident in the technology and its prospects for the future.
Source: Cryptonews
