BTC/USD Price Analysis – May 12, 2023

Daily Price Outlook

Bitcoin is currently trading at 26,297, experiencing a 4.49% decrease on Friday. The cryptocurrency has been on a downward trend for the eighth consecutive session, reaching its lowest level in eight weeks. This continued decline could be attributed to negative developments within the broader crypto industry.

One such development is the proposal by the UK Tax Authority (HMRC) to seize cryptocurrencies from businesses that evade their cryptocurrency tax obligations. HMRC is seeking new legislation that would grant it the authority to access online wallets as part of its efforts to modernize tax collection in the digital era. The news of these potential measures added additional pressure on BTC/USD prices.

Despite Bitcoin's decline, long-term holders of the cryptocurrency have been accumulating more tokens. This behavior is in contrast to the performance of the Nasdaq, the tech-heavy index on Wall Street, which has continued to rise. Investors perceive Bitcoin's recent price drop as a normal pause in a broader bullish market.

Markus Thielen, Head of Research and Strategy at Matrixport, has expressed concerns about the divergence between Bitcoin and tech stocks. He believes that based on historical correlations, Bitcoin should have surpassed $30,000 by now. The decoupling of the two assets could lead to further divergence. Nonetheless, the interest of long-term holders in Bitcoin has provided some relief.

Despite recent banking industry failures and macroeconomic concerns, Bitcoin has struggled to rally above the psychologically significant $30,000 level. The cryptocurrency slipped below $27,000 for the first time since March, showing resistance to the bullish momentum triggered by the banking crisis.

It's important to note that this paraphrased version may not capture all the nuanced details of the original text.

BTC/USD – Technical Outlook

The AUDUSD pair made an unsuccessful attempt to surpass the 0.6780 level and experienced a strong downward move, resuming its bearish correctional trend. Currently, it is approaching the 0.6665 level, and if this level is broken, it may further decline towards the 0.6550 region in the near term.

As a result, we anticipate the continuation of the bearish trend in the upcoming sessions. However, if the price manages to consolidate above the 0.6665 level despite the prevailing negative pressure, it could initiate new recovery attempts aiming to test the 0.6780 level once again.

For today's trading, we expect the price to move within a range of support at 0.6610 and resistance at 0.6730.

Happy trading!

Related:

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    * AUD/USD Price Analysis – May 12, 2023

    * Bitcoin Price Analysis – May 11, 2023