The price of Bitcoin is currently facing a significant challenge as its downtrend threatens to break key support level at $26,800with a potential target of $26,000.
This latest price trend suggests a bearish momentum in the marketwhich creates concern among investors and traders.
THAT critical support level at $26,800 is key of Bitcoin’s near-term price direction, and a sharp break below this level could open the way for further downward pressure towards the $26,000 level.
As Bitcoin finds itself in the midst of this critical juncture, market participants are closely watching price movements and potential signal indicators for a trend reversal or continuation.
The US is losing its grip on Bitcoin movements, according to Cathie Wood
Cathie Wood, there founder of ARK Investmentrecently expressed concern that The US is losing its grip on the bitcoin movement due to its regulatory system.
She pointed out that the Securities and Exchange Commission (SEC) plays an important role in shaping the regulatory landscape of cryptocurrencies in the country.
Cathie Wood has criticized the SEC’s approach to treat digital assets as securities, arguing that this approach is not suitable for verifying the potential of these assets.
As evidence, she cited ongoing disputes involving Ripple and Coinbase.
Mrs. Wood has also attributed the recent bankruptcies of Signature, Silicon Valley Bank, Silvergate and crypto exchange FTX last year to their centralized nature.
She pointed out that decentralized concept of bitcoinwhich arose after the 2008 financial crisis, addresses the lack of transparency, audibility and decentralization of traditional financial services, and is a major factor in its popularity.
Cathie Wood’s comments may have had a positive impact on Bitcoin prices on Wednesday.
Rising: Long-term investors choose stability and growth
THAT Glass node statistics indicating an increasing trend among bitcoin owners at cpreserve their parts in the long term instead of selling them for a quick profit.
This behavior, commonly known as “hodling”reflects a mature and stable view of Bitcoin as an asset class that attracts investors with a positive view of its future prospects.
The data show that the proportion of Bitcoin’s supply, which has been unchanged for at least a year, has reached an all-time high of 68%.
It suggests so most Bitcoin users are long-term investors who are not affected by short-term price fluctuations.
In addition, on-chain data indicates that 40% of Bitcoin owners have held their coins for at least three years.
This trend of increased hoarding and reduced selling pressure on Bitcoin is encouraging growth and acceptance. It also indicates that owners remain optimistic about Bitcoin’s long-term appreciation despite any potential challenges or uncertainties that may arise.
Bitcoin Ordinals Gain Ground As Ethereum Dominates NFT Market
After Ethereum’s impressive $393 million NFT volume over 30 days from April 23, exceeding the transaction volume of Bitcoin, bitcoin ordinals have now taken second place.
According to a Dune dashboard created by Domo, The majority of ordinary activity on Bitcoin is attributed to BRC-20 token transactions.
Domo is the creator of the BRC-20 token standard. The increase in BRC-20 volume can mainly be attributed to traders looking to take advantage of the recent craze for these products.
However, if the bulls start to slow down, it is likely that trading activity in BRC-20 tokens will also decrease.
As the NFT market for Bitcoin grows, it will also have been noticed that there has also been a resurgence of interest in trading meme coins on the blockchain.
Cryptocurrency Market Gains Momentum: Hong Kong Allows Retail Trading
An increase in cryptocurrency values took place on the following Tuesday the notice from the Hong Kong Securities Regulator that certain assets cryptos will be available for retail from June 1st.
According to the Hong Kong Securities and Futures Commission, retail investors can now start trading some digital assets from next month.
But it wouldn’t be only allowed on registered trading platforms.
The potential increase in volume from retail investors from June 1 sparked optimism in the market and limited Bitcoin’s losses on Wednesday morning.
Bitcoin price prediction
Bitcoin is traded at $26,750in 2% drop over 24 hours. Although he supported the basic principles, Bitcoin lost all previous daily gains today.
The Bitcoin price trend is currently bearish, with engulfing candles and a potential reversal signal. We can ascertain that support is at $26,600.
ONE close to $26,600 may trigger a bullish move, but caution and confirmation by multiple candles is advised avoid a strong sell-off towards $26,500 and a further decline to $26,200.
There 50-day exponential moving average is currently strengthening crypto bearish biasespecially if it breaks below the $27,000 resistance level.
It will be crucial to watch the $26,600 level as a close below could lead to further downside.
Vise versa a close above $26,600 opens opportunities for long positions, targeting $27,000 or higher at $27,400.
But keep an eye on the level of $27,200because break above this threshold could show resistance at $27,800.
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Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.