The Price of Bitcoin Faces Resistance and Selling Pressure
The price of Bitcoin has been rejected as it approached critical resistance above $27,000. Currently trading at $26,650 with a 2% loss in the last 24 hours, Bitcoin has underperformed XRP and Toncoin’s TON over the past week. However, there is hope for a bounce in the cryptocurrency’s price if buyers can defend current levels.
The Key Bitcoin Level to Watch
According to crypto research firm Material Indicators, traders on Binance have been selling Bitcoin and moving liquidity below current levels. The Binance orderbook for the BTCUSDT trading pair appears thin, with a small buy wall at around $24,700 that needs to be defended to prevent further downside price action. If bulls succeed in defending this level, Bitcoin is likely to rally and reclaim lost territory. However, if bears take over, the price could drop to critical support levels at $23,000 and $22,000.
Macroeconomic Forces Influence Bitcoin Price
Data from trading desk QCP Capital suggests that macroeconomic factors have played a significant role in influencing the price of Bitcoin. The recent “hawkish” surprise from the US Federal Reserve limited BTC’s upside momentum and had a bearish impact on legacy markets. The Nasdaq 100 and rates markets broke key levels as a result. QCP Capital believes that this macro move could seep into crypto markets and potentially lower BTC’s price.
Hot Take: What Lies Ahead for Bitcoin?
The rejection at critical resistance and ongoing selling pressure pose challenges for Bitcoin’s price. However, if buyers can defend current levels and liquidity increases, there is potential for a bounce in the cryptocurrency’s price. On the other hand, if bears take over, the price could drop further to critical support levels. The influence of macroeconomic forces, such as the US Federal Reserve’s actions, adds uncertainty to Bitcoin’s future price movements. It remains to be seen how these factors will shape the cryptocurrency’s trajectory in the coming days.
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