Bitcoin Price Prediction: $80K on the Horizon – Will BTC Rally Soon?
Bitcoin (BTC), the dominant cryptocurrency, is facing challenges in reversing its bearish trend as it hovers around the $67,824 mark and hits an intra-day low of $66,600. The decline has been exacerbated by the release of strong US labor market and Services PMI data, which has reduced investor expectations of a September Fed rate cut and dampened demand for riskier assets.
Moving forward, Bitcoin investors will closely watch for comments from Fed officials, particularly from Fed’s Waller, who is scheduled to speak on Friday. Hawkish remarks could further weigh on Bitcoin’s performance. Additionally, upcoming reports on US Durable Goods Orders and the Michigan Consumer Sentiment Index will also influence market sentiment.
The recent strengthening of the US dollar, driven by positive economic data, has diminished the likelihood of a Federal Reserve rate cut in September. This has put pressure on the crypto market, including Bitcoin. Atlanta Fed President Raphael Bostic has expressed concerns about ongoing inflation, suggesting that the Fed may maintain higher rates to prevent economic overheating.
According to the FedWatch Tool, the chances of unchanged rates in September have risen from 41.9% to 48.4% on May 23rd. In addition, US Initial Jobless Claims have fallen by 8,000 to 215,000 for the week ending May 18. PMI data shows that Manufacturing PMI has increased to 50.9 in May, Services PMI has risen to 54.8, and Composite PMI has jumped to 54.4, all surpassing expectations.
The stronger US dollar and positive economic indicators have made Bitcoin and other crypto investments less attractive due to higher opportunity costs.
However, Bitcoin has recently experienced a bullish trend due to regulatory changes in the US. Congress members have urged the SEC to approve spot Ethereum (ETH) ETFs, and the FIT21 bill, which clarifies cryptocurrency regulations, has been passed. Furthermore, major Bitcoin holders, known as “whales,” have accumulated 20,000 BTC, worth around $1.4 billion, in the past week. Strong activity in Bitcoin-linked ETFs has also been observed, with $1.7 billion flowing into these funds over the last eight days.
These regulatory changes and positive developments have increased demand for Bitcoin, with significant accumulation by whales and substantial inflows into spot Bitcoin ETFs.
Currently, Bitcoin (BTC/USD) is trading at $67,835, down 2.25% over the past 24 hours, indicating a bearish Bitcoin price prediction. The 4-hour chart shows a pivot point at $68,263, with immediate resistance levels at $70,029, $71,458, and $73,299. On the downside, immediate support levels are at $66,357, $64,947, and $63,490.
The Relative Strength Index (RSI) is at 40, indicating that Bitcoin is approaching oversold conditions. The 50-day Exponential Moving Average (EMA) is at $68,615, suggesting a bearish trend as prices trade below this average.
In conclusion, Bitcoin’s current price action suggests a bearish outlook as it trades below the pivot point of $68,263. Immediate resistance levels are at $70,030, $71,450, and $73,300, while support levels are at $66,357, $64,947, and $63,490.
