Bitcoin Price Inches Closer to Support Level – 09 May 2023
09 May 2023
As global macro liquidity continues to decline, the price of bitcoin drops below $28,000.
- At $27,585, the price of one bitcoin is inching closer to the $27,000 psychological support level.
- Bitcoin is suffering from the macroeconomic situation as liquidity continues to disappear because of bank failures and the depreciating dollar.
- Between $27,400 and $28,250, BTC has a demand wall where around 560,000 BTC worth $15.44 billion are seeing profits.
Compared to the other digital currencies, the price of bitcoin has performed slightly better over the past few weeks. This maintained the dominance of cryptocurrencies on the market, which appears to have potential consequences if it does.
The state of the global markets
Even though the macroeconomic environment is ripe for Bitcoin’s expansion, the cryptocurrency has not actually gained much ground. This could be because the overall market is still technically bearish and that the Trade Fi market’s excessive bearishness has mostly been responsible for the rise in BTC prices.
Popular analyst Don Alt observed that despite the S&P market’s strong performance, Bitcoin did not have a surge. Success for gold on the market also had little effect. The US banking crisis and the US Dollar’s decline, however, were the periods of greatest bullishness.
However, this was insufficient to cause the move past $30,000 that investors had been hoping for.
One explanation could be that banks are losing value as macro liquidity is constantly being drained. Deposits made by customers were further left in limbo because of recent bank failures and the declining value of the dollar. Like this, BTC did not experience much growth.
In addition, market players are more concerned with making money now than they are with Holding for future gains. The fact that this is how meme coins like PEPE gained notoriety shows this.
The price of bitcoin has further space to rise.
As of this writing, the price of one bitcoin was $27,739, having fallen below the $28,000 threshold on May 8. The first of the cryptocurrency’s three important support levels to watch out for is $27,000, a floor that has held steady for almost two and a half months.
The following two levels are $26,150, which corresponds with the 100-day Exponential Moving Average (EMA), and $25,982, which is a crucial level of psychological support.
In addition, the $27,430 to $28,250 range is another significant support level to watch for. Approximately 560,000 BTC, or $15.44 billion, are currently profiting from this demand wall. The cryptocurrency might be able to restore the money and confidence of investors if this range is kept as support.