BTC/USD Price Analysis – April 27, 2023
Daily Price Outlook
The BTC/USD is trading at 29,155, up 2.62% in a day. On April 26, the price of Bitcoin fell by approximately 7% within an hour, reaching $27,242. Nonetheless, BTC/USD has recovered momentum due to worries over the US economy and banking industry weaknesses.
Wild Crypto Market Swing
The volatile crypto market has resulted in traders losing almost $310 million in the last 24 hours due to the significant fluctuation in cryptocurrency values, causing both long and short positions to be liquidated.
Blockchain research firm, Arkham Intelligence, noted that before the price drop, Jump Trading, a major crypto trader, had deposited $26.6 million in BTC to exchanges, which is usually an indication of a desire to sell.
Various media outlets reported that the decrease in BTC's price was due to Arkham Intelligence mistakenly alerting users that wallets associated with Mt. Gox and the US government had begun moving large amounts of Bitcoin.
Fears Mount Over US Banking Sector
The market sentiment has taken a hit due to the growing concerns over the struggling First Republic Bank (FRB), which witnessed a drop of 50% in its shares on Tuesday and another 20% on Wednesday.
This has raised fears that the FRB may surpass the Fed borrowing limits, which could impact the entire market. However, the losses of First Republic Bank have boosted the confidence of Bitcoin enthusiasts, leading to a rise in the value of BTC/USD.
Traditional banks experiencing financial disasters have made investors turn to Bitcoin as a hedge against the financial system's instability. Consequently, as investor concerns about the US banking sector increased once again, the value of Bitcoin went up.
US Economic Risks and BTC Demand
On Wednesday, the US announced that Durable Goods Orders rose 3.2% in March, exceeding expectations of 0.8% and the previous month's fall of 1.2%. However, the US Conference Board's Consumer Confidence Index for April decreased marginally from 104.0 to 101.3. These disappointing economic statistics have raised concerns about the possibility of a recession this year.
After the data was released, there were fluctuations in the US Dollar Index (DXY), which is currently trading at 101.36, the lowest level in the past two weeks. As the dollar weakens due to US economic uncertainties, BTC/USD is on the rise.
Later today, the focus will be on the US first-quarter GDP data, which will be released before the Federal Reserve meeting next week. The market expects the Federal Reserve to increase interest rates by 25 basis points at the May 3 meeting.
Daily Technical Levels
Support Resistance
27121 29886
25810 31340
24356 32651
Pivot Point: 28575
BTC/USD – Technical Outlook
Bitcoin saw wild price swings above $28,500 before a major increase from the $27,000 support zone. It broke the $29,250 resistance but dropped sharply from $30,037. Bitcoin retested the $27,250 support, but the bulls emerged and it's now trading above $28,000.
Immediate resistance is at $29,400, with major resistance at $29,500 and $31,000. Support levels are at $28,650, $28,000, and $27,500.
Related:
* AUD/USD Price Analysis – April 27, 2023
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