Bitcoin price was trading higher on Tuesday, building on gains made in the previous trading session. At the time of writing, Bitcoin was trading 1.04% at $27,129.92 after clearing the crucial $27,000 level. The coin’s market cap has risen higher to $526 billion over the last day, while its total volume edged higher.
Data by Coinmarketcap shows that the global crypto market cap has increased by more than 1% over the last day to $1.13 trillion, while the total crypto volume jumped 20% over the same period. Bitcoin’s dominance also increased over the day.
Bitcoin’s price was gaining on Tuesday on the back of greenlight of some retail crypto trading by Hong Kong. Hong Kong’s Securities and Futures Commission announced on Monday that it would allow retail traders to trade certain crypto assets beginning June 1 on registered platforms. Markets widely anticipated the move amid Hong Kong’s broader efforts to become a global crypto hub.
Even so, Hong Kong’s new guidelines are in sharp contrast with China’s ban on crypto trading in 2021, as well as the continued US regulatory crackdown on cryptocurrencies since the fall of crypto exchange FTX. The Securities and Futures Commission of Hong Kong (SFC) has already licensed two digital asset platforms, Hash Blockchain and OSL.
Despite Hong Kong’s move to support crypto assets, concerns about the Federal Reserve’s monetary policy outlook have continued to weigh on markets as markets price in a 30% chance the Fed will hike its interest rates in its next meeting in June.
A slew of US policymakers, including Federal Reserve chair Jerome Powell, have suggested a preference for higher interest rates, ramping up bets by traders that the Fed funds rates will remain elevated in ensuing months. Ongoing US debt ceiling talks have kept investors on edge with only two weeks left until the government is due to default. US President Joe Biden and Republican House Representative Kevin McCarthy failed to reach an agreement on Monday to prevent the US government from running out of money by the end of the month and avoid a default.
Bitcoin price Outlook
Bitcoin price has been consolidating for the past few days, trading between the tight range of $27,500 and $26,500. On the daily chart, BTC, the largest cryptocurrency by market cap, has remained below the 50-day moving average, 50-day simple moving average, and the 50-day exponential moving average. Its Relative Strength Index (RSI) has moved higher past the signal line but remains below the neutral zone. The Moving Average Convergence Divergence (MACD) indicator signals a potential decline in the short term.
Therefore, the Bitcoin price is likely to fall further in the immediate term as macroeconomic factors continue to outweigh gains made. The 100-day MA at $26,500 serves as the BTC price support level. Conversely, a move past the resistance level at $28,528 along the 50-day MA will invalidate the cautiously bearish thesis.
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