BTC/USD Price Analysis – May 15, 2023
Daily Price Outlook
Bitcoin's price experienced a 1.91% increase on Monday, reaching $27,359 and recovering from the significant decline it faced in the previous week. According to Michael Saylor, Bitcoin holds a crucial position in people's portfolios for several reasons.
Saylor asserts that Bitcoin serves as a tool that provides hope and property rights to the global population of eight billion individuals. Its ability to offer digital property and scarcity through mobile devices represents a transformative shift. Saylor points to a crisis of trust in traditional fiat currencies, banks, and governing authorities as the driving force behind the growing skepticism in the existing banking system.
As faith in conventional fiat diminishes, people are turning to commodity money. Saylor argues that commodities like Gold, Oil, and Property lack the adaptability required for routine transactions, whereas Bitcoin acts as a commodity and a necessary instrument for various transactional needs, addressing the expanding financial challenges faced worldwide. Saylor's positive remarks have contributed to Bitcoin's recovery from previous losses.
Additionally, Glassnode data reveals that the number of Bitcoin wallet addresses holding at least one bitcoin has surpassed one million. This increase in wallet addresses aligns with a significant price drop of over 65% throughout the year, particularly during notable market crashes in June and following the collapse of FTX, leading to a subsequent bankruptcy filing on November 11.
Since February 2022, around 190,000 individuals, known as whole-coiners, have joined the Bitcoin network as the price declined from its peak in November 2021. It's important to note that a single Bitcoin wallet address may not correspond to an individual, but reaching the milestone of one million addresses highlights the growing adoption of Bitcoin.
Many Bitcoin owners utilize multiple addresses, while prominent organizations such as Bitcoin exchanges and financial companies hold substantial Bitcoin holdings across various addresses. This news has contributed to the positive market gains observed in the BTC/USD trading on Monday.
BTC/USD – Technical Outlook
The price of bitcoin is showing signs of life as it breaks beyond the $27,000 barrier. Bitcoin, however, has to break over the $27,800 resistance level before any substantial upward movement can occur. Before the bulls came in, the price had fallen below $27,000 and had gotten as low as $26,200.
The price has formed a low around $25,851 and is currently correcting higher. A key bearish trend line near $27,000 on the hourly chart of BTC/USD has been broken, and the currency pair is now trading above both $26,500 and that line.
Bitcoin's current price is above the 50% Fibonacci retracement level of the fall from the $28,334 swing high to the $25,851 low. Price is trading above the 100 hourly Simple Moving Average and $26,500.
The 61.8% Fibonacci retracement level of the recent decline ($27,400) is providing initial resistance. Close to $27,800 is the next major barrier to growth.
If the price is able to close above $27,800, it may begin a solid uptrend. The next significant resistance level is about $28,000, above which the price might rise to $28,500.
But if Bitcoin can't go through $27,400, we might see another drop. On the downside, $27,000 and the 100 hourly Simple Moving Average provide near-term support.
If prices drop below the $26,500 area, the market may experience further weakness. In that case, it's possible that the price will fall back to the $26,000 level. Bitcoin's next significant support is at $25,000, so if prices keep falling, that's where it might end up.
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