News Updates May 24, 2023
1. Bitcoin Price Analysis: Bears Dominate BTC Market, Possible Reversal Ahead. The latest Bitcoin price analysis shows a strong bearish trend. The bears are reigning the price charts as the price has decreased again during the day. Currently, it is settled on the $26,238 mark, almost 3.33% in the red. The price continued to fall as bears sent BTC/USD below the psychological level of $27,000, reaching a low of $26,106 during the day.
Since bulls haven’t shown any indications of recovering momentum, bears will likely keep BTC under their thumb for the foreseeable future. Due to this anticipation, investors fled the market, bringing the market capitalization of Bitcoin to $510 billion, with a decrease of 3.33 percent in the last 24 hours. However, the trading volume traded in the last 24 hours stands at $15 billion, signaling that some traders are still optimistic. This decline indicates that bears still have the upper hand in the market and that bulls’ chances of making a comeback are low in the eyes of traders.
Bitcoin price analysis 24-hour price chart: BTC shows a strong bearish trend on the chart
Looking at the 1-day price chart for Bitcoin price analysis shows the price has decreased quite steadily because of the constant increase in bearish momentum. Bears have been successful in taking control of the market, pushing BTC/USD to a low of $26,106. However, bulls are still trying to make a comeback as sellers seem to be struggling for momentum.
BTC’s Relative Strength Index (RSI) value of 37.79 and recent plunge below its signal line indicate that BTC is now in a bearish market, making it a potentially profitable buy for investors wanting to capitalize on current market conditions. The Bollinger bands are also narrowing, suggesting that volatility is decreasing and consolidating within a certain range. The upper Bollinger band is located at the $28,886 mark, and the lower band is at $25,908. The moving average indicator (MA) is also showing a bearish sentiment as the 50-day MA line crosses below the 100-day MA line.
Bitcoin price analysis 4-hour price chart: Downtrend shows no sign of reversal
The 24-hour Bitcoin price analysis chart shows the coin is trading in a strong downtrend, and bears are dominating the market. The pair has formed a series of lower highs and lower lows, indicating that selling pressure is intensifying.
The moving average (MA) value is still standing high as compared to the current price of $26,913. The SMA 20 curve is going higher as well because of the previous bullish trend. The Relative Strength Index (RSI) also confirms the bearish market sentiment as it stands at 32.63, way below the oversold level and signaling that there is more bearish pressure to come. Following the breakthrough of the Bollinger Bands are now squeezing together, which is a sign of reduced volatility. The lower band is located at $26,378, and the upper one is at $27,506.
Bitcoin price analysis conclusion
All in all, Bitcoin price analysis shows that the market sentiment continues to be bearish despite some bullish attempts made by bulls. The selling pressure is still strong and if any further declines occur, then the $26,000 level could be tested. The indicators also indicate that the bears are in control, and any sign of recovery is a long way off.
2. The minutes from the Federal Reserve's early May meeting reveal a lack of consensus regarding future interest rate changes, bringing an air of uncertainty to markets today.
Officials expressed indecision about whether to continue raising rates or maintain the status quo.
In light of this uncertain macroeconomic backdrop, what are the best cryptos to buy now?
The minutes suggest that Fed officials are worried that increasing interest rates and tightening monetary policy could slow economic growth, meaning the Fed may stop raising rates soon. According to reports from the meeting, officials discussed whether more rate hikes were needed but reached no firm conclusion.
Although the reports are released weeks after the meeting, they offer important clues about officials' views and the potential direction of monetary policy.
The reports from the May meeting are particularly informative because the future path of monetary policy is unclear. They show that members disagreed on whether to raise interest rates again or keep them unchanged at their mid-June meeting.
Discussions at the meeting revealed the extent of disagreements. Some officials said rising inflation would probably warrant more rate increases, but several others did not think tighter monetary policy was necessary.
On balance, officials agreed to closely monitor economic data and keep their options open before the next meeting on June 13-14.
Some officials stressed that a change in the Fed's policy outlook should not signal an end to rate hikes this year or a bias toward cuts.
Officials have repeatedly said they do not expect to cut the federal funds rate this year and instead expect to leave the rate unchanged once it reaches an appropriately restrictive level.
This view contrasts with investors' widespread expectation of at least a quarter-point rate cut by year-end.
The reports led traders to estimate a 70.5% chance the Fed would keep rates steady at its June meeting, according to the CME FedWatch Tool.
The reports also show that the Fed staff forecast a mild recession later this year, mainly due to expected tighter bank lending standards and already restrictive financial conditions.
Staff first forecast a recession after Silicon Valley Bank and Signature Bank failed in March. They envision a moderately paced recovery from the recession.
This prediction did not deter officials from unanimously voting in May to raise the federal funds rate a quarter point, to a range of 5-5.25%.
Officials seemed somewhat less pessimistic about economic prospects but recognized tighter credit conditions could curb activity, though the effects remained unsure.
The release of the minutes has resulted in a downturn in the cryptocurrency market, with the total market cap experiencing a 2.98% decline as of today.
Bitcoin has also faced a setback, registering a loss of 3.30% so far today and currently trading at $26,323.
In the face of numerous hurdles, the cryptocurrency market continues to present investors with potential opportunities for growth.
3. Elon Musk Asks “Not To Bet On Crypto And Dogecoin”
Twitter CEO Elon Musk advises crypto enthusiasts to avoid betting all their life savings on crypto and Dogecoin. DOGE price falls over 3%.
“I’m not advising anyone to buy crypto or bet the farm on Dogecoin,” said Tesla and Twitter CEO Elon Musk during a virtual conference hosted by the Wall Street Journal.
Musk also agreed that he remains a fan of Dogecoin meme coin, saying “Dogecoin is my favorite cryptocurrency because it has the best humor and has dogs.” However, he isn’t suggesting that anyone should put their life savings on crypto or Dogecoin.
Elon Musk Warns Investors of Putting All Money in Crypto or Dogecoin
During the Wall Street Journal’s CEO Council Summit in London, Elon Musk shared a rare piece of advice for investors to avoid putting all their money on crypto or Dogecoin. Elon Musk advising crypto enthusiasts and Dogecoin fans is slightly in contrast to his recent stance on crypto and Dogecoin.
Elon Musk hinted at integrating Dogecoin for payments on Twitter and even accepting DOGE as payment for the Twitter Blue subscription. Dogecoin created as a joke now has a market capitalization of $10 billion, entering the top 10 cryptocurrencies.
He even changed the iconic Twitter logo from “blue bird” to Dogecoin logo recently to show his support for the meme coin. However, Musk’s massive support for Dogecoin caused a $258 billion racketeering lawsuit accusing him Musk of running a pyramid scheme. In April, he urged the court to dismiss the lawsuit.
In May, he appointed Linda Yaccarino as the new Twitter CEO, who is believed to be also a supporter of Dogecoin, as well as Shiba Inu.