The value of Bitcoin drops this morning by nearly 2.50% over 24 hours in favor of a rapid market reversal which is causing a major stir among investors and traders. This unexpected drop in the price of Bitcoin is the latest in a series of fluctuations characteristic of this digital currency.
This bitcoin price prediction intended to provide crucial information on current Bitcoin market trends and indicators to guide potential investors and current holders in their decision-making.
With a comprehensive analysis of the economic news factors influencing this decline, we will seek to forecast the potential trajectories that the price of Bitcoin could take in the near future.
A massive Bitcoin sell-off at a steep discount on Binance Australia
May 18, Binance Australia had informed its customers of the suspension of services involving the Australian dollar due to a decision made by the third-party payment provider, PayID. Binance then imposed a immediate cessation of deposits by bank transfer, although PayID withdrawals were allowed until June 1 at 5 p.m. local time. Additionally, the platform advised its Australian customers that any AUD remaining in their accounts as of May 31 would be promptly converted to USDT.
The day after these announcements, there was a large rush to withdraw fundssignificantly influencing the Bitcoin (BTC) price depreciation on Binance Australia : against the Australian dollar, the price of BTC fell 21%.
CCData analyst Hosam Mahmoud told CoinDesk in an interview, “The Binance announcement caused traders to dump their BTC/AUD pairs, causing the price to hit a historically significant discount.”
Binance, however, indicated actively seek an alternative supplier to continue to allow deposits and withdrawals in Australian dollars. And, despite the currently depressed prices on this subsidiary of Binance, it is still possible, at present, to buy and sell cryptocurrencies using credit or debit cards.
Tether launches Bitcoin mining in Uruguay
Tether, the company responsible for the most widely used stablecoin on the market, USDT, has announced its foray into the energy sector. The company plans to focus on sustainable energy production, specifically targeting Bitcoin miningin an effort to address the massive power consumption issues of cryptocurrency.
This decision constitutes a key element of Tether’s cash management strategy, which consists of allocating up to 15% of net income to investments in Bitcoin. Tether previously revealed hold $1.5 billioni.e. about 2% of its total reserves, in bitcoins.
By harnessing renewable energy sources, Tether aims to mitigate the negative environmental impacts of Bitcoin mining, while simultaneously enhancing network security.
US Debt Ceiling Discussions Continue to Rock Bitcoin Price
While a consensus had been reached between Speaker of the House Kevin McCarthy and US President Joe Biden to postpone the issue of the debt ceiling until January 2025, the Bitcoin (BTC) had surpassed $28,000 Sunday, achieving the feat for the first time in more than three weeks.
On the other hand, as of Monday, the market became quite volatile again depending on the rumors of several Republican parliamentarians ready to vote against this agreement. Bitcoin then traded around $27,740, and on Tuesday the trend was similar with a marginal increase of 0.1% from the previous day, although considerably lower than its peak value earlier in the day.
Today, Bitcoin is currently facing more intense downward pressure as market participants eagerly await further indications on the progress of the debt ceiling discussions. The urgency of getting out of this crisis is imminent and in particular following China’s announcement of a new innovation and development plan dedicated to Web3.
Bitcoin Price Prediction
Bitcoin faces considerable selling off after being fell below the key support level of $27,500. The four-hour chart shows a break of the 50% Fibonacci level and the rising trend line, signaling a downtrend.
A bearish engulfing candlestick pattern further emphasizes the bearish momentum. Bitcoin has already hit the 61.8% Fibonacci level at $27,250 and is now heading towards the next level of support around $26,950.
A rebound above $26,500 could trigger a bullish trend for bitcoin. In this case, we expect its price to meet a resistance at around $27,300 and $27,500. But, if this uptrend continues, and these resistances are breached on the upside, then Bitcoin could challenge a next resistance level at $28,000.
In short, it will be crucial today to watch the $27,500 support zone and of stay alert for potential bounces near the $26,500 level for Bitcoin.
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.
Find the best price to buy/sell cryptocurrency
