Bitcoin Price Prediction as Bulls Protect the $27,000 Support – Where is BTC Headed Now?
Bitcoin (BTC), the world’s first and largest cryptocurrency by market capitalization, is currently trading just above its 50-Day Moving Average (DMA) around the $27,300 mark, with bulls having mounted a strong protection of support in the $27,000 area in recent days.
The BTC price dropped 9% last week and, at current levels, is around 12% below the 10-month highs it hit earlier this month above the $31,000 level.
That marked the cryptocurrency’s worst weekly performance since last November, with traders opting to book profit in wake of this year’s big run-up amid lingering uncertainties regarding 1) the US regulatory outlook and 2) the outlook for Fed interest rate hikes.
For reference, despite the sharp recent drop, Bitcoin is still up around 65% this year and most analysts continue to express confidence that the bull market remains intact.
Focus this week will be on macro themes including 1) earnings from US tech behemoths like Apple, Amazon, Microsoft and Google, 2) US inflation and GDP data, both of which could impact Fed tightening expectations and 3) any developments regarding the US debt ceiling as the US treasury quickly runs out of cash.
The US central bank is expected to deliver a final rate hike next Wednesday before embarking on a cutting cycle later this year to stave off a widely expected incoming recession.
That’s despite Fed officials having repeatedly pushed back against the idea of a rate-cutting cycle later this year.
Since the break of the late-March/early-April uptrend and the 21DMA last week, many technicians have been eyeing a retest of support-turned-resistance in the $26,500 area, which hasn’t quite yet materialized.
Others were eyeing a drop all the way back to key long-term support in the $25,200-400
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