Bitcoin, the leading digital currency, has recently found whole lot of support at the $26,000 level, forming a double-bottom pattern.
This level has proven to be a strong support zone for BTC, indicating a potential positive tendency reversal.
In this Bitcoin (BTC) price prediction, we will delve into the implications of this price action and explore the key factors influencing Bitcoin’s price prediction.
Let’s examine the present market dynamics and analyze whether the double bottom formation could lead to a potential upward tendency for BTC.
Japan to Implement Stricter Regulations for Cryptocurrency Exchanges
Japan will enforce stricter anti-money laundering (AML) regulations for Bitcoin (BTC) transactions on June 1st.
This move intends to align
Japan’s legal framework with international cryptographic standards. Within a meeting held in Japan in mid-May, G7 members discussed travel policies.
After the hacking incidents at Mt.Gox and Coincheck, Japan’s financial regulating authority, the Financial Services Agency (FSA), implemented new regulations for digital currency exchanges.
The FSA has introduced numerous regulations to guard consumers, including the segregation of customer and business assets, annual audits to verify holdings, a ban on leveraged trading on exchanges, and a requirement for authorized digital currency exchanges to store at least 95 percent of client funds in cold wallets.
The next regulations in Japan have added pressure to the BTC/USD prices, which were already experiencing a decline owing to the increasing wave of digital currency regulations worldwide.
Decline in Cryptocurrency Attacks Indicates Improved Security Measures, but Bitcoin Prices Remain Unaffected
In the 1st quarter of 2023, assaults and hacks on digital currency protocols decreased significantly, experiencing a 70 percent decline compared to the same period in 2022, reports by research conducted by security company TRM Labs.
Regardless of similar incidents, the average size of the hacks decreased from nearly $30
Million over the past year’s 1st quarter to $10.5 Million in Q1 2023.
TRM Labs likewise observed that victims of digital currency theft were able to recover over 50 percent of their stolen funds in Q1 2023, highlighting the capacity for these incidents to function as unofficial bug bounties occasionally.
The decline in cryptocurrency attacks this year can be attributed to factors such as improved cybersecurity practices, stronger regulations, and increased collaboration between industry participants, supplying hope for a more safe future.
Even though these research findings are favorable for the cryptocurrency market, they did not result in an upward push for Bitcoin prices.
Bitcoin (BTC) gets Support from Florida Governor, Ron DeSantis
The conversation betwixt Elon Musk (Tesla & SpaceX CEO) and Florida Governor Ron DeSantis, who is likewise a Republican presidential candidate, concluded with a discussion about digital assets, including mentions of Bitcoin (BTC) and Dogecoin.
Governor DeSantis expressed his support for Bitcoin, framing it as a matter of civil liberties and criticizing his opponents’ efforts to impose restrictions on digital currencies as an example of Government overreach.
DeSantis stated, “You have every right to do Bitcoin. The only reason these people in Washington don’t like it is because they have no control over it.”
He committed to vigorously oppose any congressional effort to ban “things like Bitcoin” through new legislation. Furthermore, he warned that if President Biden is reelected, the present administration may seek to eliminate Bitcoin.
DeSantis thinks that Bitcoin (BTC) is a target for the present administration, adding, “And if it goes on for another four years, they’ll probably kill it.”
On Wednesday, Ron DeSantis likewise expressed his opposition to the creation of a monetary authority digital currency but pledged to defend people’s capacity to trade in digital assets like Bitcoin. This support from DeSantis is helping to delimit the losses in Bitcoin (BTC) for the day.
Bitcoin (BTC) Price Prediction
During the Asian trading session, Bitcoin, the leading digital currency, has found support near the $25,800 mark.
The four-hour timeframe outlines the formation of a hammer pattern over this level, indicating a potential reversal towards a positive tendency tendency and a weakening of bearish momentum.
Nonetheless, Bitcoin (BTC) is facing resistance at the $26,600 level, which is further strengthened by the presence of the 50-day exponential moving average.
Bitcoin (BTC) Price Chart – Source: Tradingview
This level previously acted as support but now acts as a resistance following a violation.
If Bitcoin (BTC) falls below the $25,800 level, it may target the $25,500 level as a downside target. The oversold conditions indicated by the RSI and MACD indicators suggest the likelihood of a minor positive tendency correction.
This is why, close monitoring of the $25,800 level is critical, as a breakout over it can potentially lead to a modest positive tendency correction toward the $26,400 or $26,600 levels.
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