Bitcoin price shows no signs of bullish momentum as it is hovering below a critical psychological level. This lack of buying pressure may be the result of exhaustion following BTC’s impressive Q1 rally in Q1 2023. Meanwhile, two major macroeconomic events are on the horizon. Traders will likely take positions in the direction of the most likely outcome. Analysts interpret the technical picture of BTC in the light of these data.
What does Bitcoin technical data show?
Crypto analyst Akash Girimath explains Bitcoin technical indicators as follows. Bitcoin price failed to resume its uptrend after its recent decline from $30,000 to $27,200. Although the bulls tried to push BTC up again, bearish traders stretching from $29,630 to $30,480 faced a lot of selling pressure. After two failed attempts, BTC is currently hovering around $29,200, as you follow on Kriptokoin.com.
Traders are waiting for a consolidation or a slow decline that sweeps Monday’s low of $26,933. If the bears persist, they can get Bitcoin price to target sell-stop liquidity below the equal lows of $26,555. The ideal Bitcoin price target for long-term accumulation would be $25,175 and the Fair Value Gap (FVG) stretching from $23,966 to $22,139.
BTC 1-day chartMacroeconomic events and their effects on Bitcoin price
There is a historical correlation between BTC and the S&P 500. Therefore, the Federal Reserve’s decisions have a significant impact on the Bitcoin price. However, this correlation declined sharply from its high of 0.87 in January to 0.36 in April.
BTC and S&P 500 correlation chartThe Fed’s rate decision in the second quarter of 2023 will likely see an increase of 25 basis points. Thus, the Fed will increase the interest rate from 5% to 5.25%. If the Fed deviates from this plan and proposes a rise of more than 25 basis points, it will be a hawkish stance that will mean a stronger US Dollar. This will cause the stock market and Bitcoin price to fall.
Therefore, traders need to be careful when trading Bitcoin price next week due to the volatility that this macroeconomic event can bring. Also, in addition to the interest rate decision on May 3, the employment report or Non-Farm Employment (NFP) on May 9 and the Inflation rate on May 10 will be another event to watch for volatility investors.
Bitcoin price will embody the adage “sell in May and go”
Crypto analyst Filip L, on the other hand, takes a different perspective. Bitcoin price excited the bulls earlier this week as BTC surged above $30,000. Unfortunately, this good news no longer matters as the week progresses. Thus, BTC started to say goodbye to this level, approaching the lower limit of $ 29,000. The weekly chart reveals a clear bearish trend with low lows and low highs. However, there is still nothing to worry about, other than confirming that the bears are at work here.
BTC has one element that will be very important going forward. This is the 55-day Simple Moving Average (SMA), which caught the dip around $27,060 for the week. Bitcoin price will start to slide lower next week. At that time, we will realize that the 55-day SMA support is short-lived and the decline will continue. Investors should brace for a sell-off near $22,000 to find support near the 200-day SMA and drop the Bitcoin price by 25% for May.
BTC weekly chartThe simple three-week pattern can still be broken or erased if the bulls rise above $30,000. Ideally, it is necessary to break this pattern and avoid a double top. For this, a break above last week’s high of $30,580 is needed. With a pull from there, it is possible to move towards $31,321. In fact, it is likely to push the Bitcoin price towards $33,000 by summer.
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