Bitcoin on May 31 – BTC Loses 3% in 24 Hours

Regulation Hits Cryptocurrencies Again – This is today’s news: Binance withdraws anonymous cryptocurrencies (XMR, DASH, ZEC) for French residents. This decision was made because of strict French regulations, but other European countries should be concerned. A sad day for cryptocurrencies since the bitcoin price is struggling to hold the psychological level of $27,000. Is this the beginning of a wave of fall on Bitcoin?

This Bitcoin price analysis is brought to you in collaboration with CryptoTrader and its algorithmic trading solution finally accessible to individuals.

Bitcoin price drops 3% in 24 hours

New day in the red for Bitcoin. While the monthly close is in a few hours, the price of Bitcoin 3% drop in 24 hours :

Performance of Bitcoin against different pairs – Source: Coincheckup

BTC remains in the positive in a weekbut it displays a drop of nearly 6% in one month. In three months, the price of BTC only shows one 15% increase. The BTC/ETH pair drops by 0.7% in 24 hoursand of 6% in one month.

Fall in the correlation between the price of Bitcoin and Gold

THE Bitcoin is often compared to Gold, because they are two assets that look alike. It’s not for nothing that we talk aboutdigital gold when talking about Bitcoin. These two assets can serve as cashthey are available in limited quantities, etc. Recently, the correlation between the price of Bitcoin and Gold was significant as you can see on the graph:

The correlation between Bitcoin and gold has been falling for a few weeks - May 31, 2023.
The correlation between Bitcoin and Gold is falling Source: Kaiko

Not all market operators view Bitcoin as a safe investment. However, during the banking crisis known this year, the Bitcoin has acted as a safe haven. In fact, the correlation between the two assets has become more important reaching more than 50% in April. However, for several weeks, the correlation between BTC and Gold has dropped. She is currently at 11% according to data from Kaiko.

Back to support level at $26,700 for Bitcoin price?

Buyers failed to hold the level of rack at $27,500the price marks a DETOUR above ranges between $27,500 and $26,700 :

Bitcoin price may retrace to the support level at $26,700 - May 31, 2023.
Bitcoin price against the dollar (4H)

The price could continue to fall towards the bracket at $26,700. Buyers will then absolutely have to defend this level to avoid sliding towards the next support located at $25,000. The objective of the buyers is now to return above the area at $27,600and make one support. In this case, the price could return to the level of the resistance at $28,500. The RSI is at the level of the bullish trendlinea rebound could occur here.

The correlation between Bitcoin and Gold falls, it went from over 50% to 11% in just a few weeks. Bitcoin behaved as a safe haven for a few weeks during the banking crisis. At the same time, the Bitcoin price does not confirm the exit from the range between $26,700 and $27,500. Buyers are going to have to defend the support at $26,700 at all costs to avoid seeing another wave of declines that could bring the price back to $25,000.

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