The cryptocurrency market has seen a rollercoaster over the past few days, with Bitcoin (BTC) seeing some significant ups and downs.
Bitcoin price analysis shows a downtrend of 1.82 percent.
Support for BTC prices is present at the $26,600 level.
Bitcoin price analysis for today reveals Bitcoin’s attempts to surpass the $30,000 level have been resisted, causing the price to retreat. Bitcoin’s price has declined most of the day as bearish signs prevail.BTC Is trading at $26,884.75 at the moment of writing after forming lower lows of $26,859.65.
The price of Bitcoin is trading above the MA50 and MA100 levels, currently at $27,130.99 and $26,480.00, respectively. The EMA 50 acts as the support level, while the EMA100 is an area of resistance.BTC’s price failed to break the psychological levels of $30,000 and is now in danger of testing the lower levels.
Bitcoin Options Expiry: Bulls’ Optimism Wanes
Bears are capitalizing on macroeconomic headwinds, concerns over Silk Road coins, and uncertainty stemming from Bitcoin’s transaction fee spike to exert downward pressure on the price. Billionaire investor Warren Buffett’s lack of optimism regarding the growth of the U.S. economy has added to the negative sentiment. Consequently, some Bitcoin traders have reduced their exposure, reducing the likelihood of breaking the $30,000 barrier.
The open interest for the May 12 options expiry is $900 million, although it bears initially expected prices below $28,000. This optimism among bears arose after Bitcoin’s price rallied but has since dissipated. The call-to-put ratio reflects an imbalance, with more call options than put options.
The price range of Bitcoin on the expiry date gives rise to four likely scenarios with varying imbalances between call and put options. These imbalances determine the theoretical profit potential for each side.
- Between $25,000 and $27,000: Bears in total control, profiting $230 million.
- Between $27,000 and $28,000: The net result favors put options by $120 million.
- Between $28,000 and $29,000: The result is balanced between put and call options.
- Between $29,000 and $30,000: The net result favors call options by $70 million.
Bitcoin’s price is under pressure as bears seek to exert downward momentum. The upcoming options expiry on May 12 determines whether the price will drop below the key support level of $27,000. Traders should exercise caution as bears are in a favorable position, potentially leading to further negative price movements.
BTC/USD Technical analysis on all timeframes: Bearish sentiment cuts across all timeframes
The long- outlook for BTC/USD is bearish, with the price trending downwards. On a daily timeframe, Bitcoin has formed lower lows and lower highs as it looks to test the support level at $26,600. The Relative Strength Index (RSI) remains below 50, indicating a downward trend in momentum.
The MACD is bearish and below the zero line, indicating that bears are in control. The RSI has fallen to 37.99, showing a lack of buying pressure. Further losses for BTC can be expected if the RSI drops below 30. The key support level is $26,600; further downside could lead to a test of the $25,400 level.
In the 4-hourly timeframe, BTC/USD has formed a narrow range, with the price trading between $27,400 and $28,200. The RSI is at 30.68, indicating that bears have the upper hand in the market. The MACD remains bearish and below the zero line. The hourly chart shows a bearish trend as Bitcoin fails to break above the resistance level at $28,200. The RSI has dropped below 40, indicating that bears could extend the current downtrend.
Bitcoin price analysis conclusion
Bitcoin is trading in a bearish trend on all timeframes. The key support level of $26,600 should be closely monitored to determine whether bears can break it and extend their dominance over the market. The key support levels to watch are the Fibonacci retracement levels of $25,400 and $24,000. The upcoming options expiry could potentially lead to further losses for Bitcoin if bears can take control of the market.
While waiting for Bitcoin to move further, see our Price Predictions on XDC, Polkadot, and Curve
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Source: https://www.cryptopolitan.com/bitcoin-price-analysis-2023-05-11/