BTC/USD Price Analysis – June 07, 2023

Daily Price Outlook

Bitcoin’s current market valuation stands at $521.98 billion USD, with a price of $26,913.07 per bitcoin (USD) and a trading volume of $23.74 billion over the past day.

Despite the SEC’s filing to freeze Binance’s US assets, the bitcoin price managed to recover to $27,000. The market initially experienced a decline, but bitcoin quickly regained its position, driving the cryptocurrency market higher.

However, the SEC’s actions against Binance indicate ongoing efforts to curtail its operations. The recent stumble in the bitcoin price was followed by a recovery, with the current price at $27,365, offering some relief to investors after it had dropped to around $25,000 the previous day. This rebound was crucial to dispel concerns about further price drops caused by panic selling.

Although investors remained resilient, the overall market sentiment, as indicated by the Crypto Fear and Greed Index, currently signals fear for the first time in almost three months. This change in sentiment reflects the caution prevailing in the cryptocurrency market.

Another indicator, the net unrealized profit or loss, also suggests that the likelihood of recovery outweighs the risk of loss. However, the cryptocurrency remains susceptible to potential crashes depending on the actions taken by the Securities and Exchange Commission (SEC).

The SEC’s crackdown on Binance has led to a restraining order to freeze its assets, affecting the holding and operating companies of Binance.US.

Despite these developments, Binance assured its customers that their assets are secure, and the Binance.US platform continues to function normally for deposits and withdrawals.

BTC/USD Price Chart – Source: Tradingview

BTC/USD – Technical Outlook

Bitcoin is experiencing a recovery from the $25,400 level and is currently trading around $26,900. However, it is encountering resistance at $27,350, which suggests a rise in selling pressure and poses a challenge for further upward movement.

Looking at technical indicators, there is a divergence, with some indicators indicating bullish territory, implying the presence of buying pressure. To sustain its upward momentum, Bitcoin needs to surpass the critical level of $27,350.

On the downside, immediate support can be found around $26,600, and a break below this level could potentially lead to a decline towards $26,175, followed by $25,400. Conversely, if Bitcoin manages to break through the resistance at $27,350, the next targets could be $28,000 and $28,400. Therefore, closely monitoring the price action around the $27,350 level is important for traders.