Bitcoin Price Prediction Struggling to Break Above $27,500 and May Turn Downward


Bitcoin, the main cryptocurrency, is struggling to break above the significant resistance level at $27,500.

Despite this morning’s bullish momentum, Bitcoin’s upward movement is hampered by a persistent downtrend line.

The feeling of market remains cautious as traders watch Bitcoin’s performance closely, waiting for a potential breakout or retracement.

By the way, the next price moves will likely be influenced by Bitcoin’s ability to overcome these hurdles and establish a new direction.

Tether allocates millions to Bitcoin as part of its reserve diversification plan

Wednesday, Tetherthe organization behind USDT, the largest stablecoin by market cap, has announced its intention to acquire Bitcoin as part of its reserve support strategy.

By incorporating the leading cryptocurrency into its balance sheet, Tether joins the ranks of other top-tier entities, diversifying their holdings.

The main objective of the next Bitcoin purchase by Tether is to diversify its reserve holdings that back the USDT token.

This strategy ensures that the firm maintains the 1-to-1 peg of USDT to the US dollar.

Tether thus plans to allocate around $222 millionwhich represents 15% of its net profit, on this purchase.

The decision to invest in Bitcoin was made considering its strength and potential as an investment, according to Paolo Ardoino, CTO of Tether.

News of Tether’s massive Bitcoin purchase to support its USDT is likely to bolster Bitcoin, increase its legitimacy, and contribute to its positive momentum on Thursday.

Korea: Politicians Unite in Support of Cryptocurrency Regulation Following High-Profile Murder Case

According to a Bloomberg report of May 18, a Korean woman was abducted on March 29 and then murdered in a dispute over losses related to cryptocurrencies.

This incident comes on top of a series of scandals involving digital assetsmost notably the collapse of Do Kwon’s Terra Money ecosystem in May of last year.

According to reports, the recent murder case has stepped up pressure on the Korean government to quickly pass the first independent cryptocurrency law in the country: it could receive parliamentary approval later this month.

The proposed law would introduce stricter regulations regarding reserve funds, bookkeeping and requiring digital asset companies to carry insurance to protect against attacks.

These regulations would apply to cryptocurrencies such as Bitcoin, while government-designated securities would continue to be governed by existing capital markets legislation.

News of this tragic murder case involving digital assets has had a downward impact on Bitcoin prices.

Pakistan’s finance minister doesn’t want to legalize cryptocurrencies

THE Pakistan is about toenforce a ban on cryptocurrency services and does not intend to legalize cryptocurrency trading, as stated Aisha Ghaus Pasha, Minister of State for Finance and Revenue.

This decision is a requirement of the Financial Action Task Force (FATF), which had previously placed Pakistan on its “grey list” due to the inadequacy of measures to combat money laundering and the financing of terrorism.

Banning cryptocurrencies was one of the conditions set by the FATF for Pakistan’s removal from the list. The State Bank of Pakistan (SBP) and the Ministry of Information and Technology worked together to draft the ban legislation.

This strict stance on cryptocurrency in Pakistan has added pressure to the market and limited gains for all major cryptocurrencies.

The price of bitcoin

Bitcoin is trading at $27,385knowing a increase of less than 2% over 24 hours, this Thursday morning.

BTC is facing challenges to recover its $30,000 level from the previous month and is currently hovering around $27,000.

At present, Bitcoin is facing significant resistance around the $27,500 level : this acts as a double vertex model.

If Bitcoin manages to break above the $27,500 level in multiple timeframes, it has the potential to target the next resistances at $27,700 or $28,000.

Further demand for BTC could even propel it above the $28,000 level, the next resistance likely around $28,300.

Bitcoin Price Chart – Source: Tradingview

However, Bitcoin is currently struggling to break above the $27,500 level, which is bolstered by the double top pattern, downtrend line, and rotating top candlestick formation below this level.

These indicators all suggest a possible weakness in the uptrend, with Bitcoin possibly settling towards $27,000 or $26,800.

Therefore, it is important to watch the $27,500 level as a pivot point important for the performance of Bitcoin today.

Top 10 Alternatives to Bitcoin and Ethereum to Watch

Cryptonews Reviewed top 10 cryptocurrencies for 2023. If you are looking for a higher potential investment opportunity, there are many other projects worth considering.

Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.

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