Bitcoin (BTC) recaptured $27,000 on Friday morning, but resistance around $27,250 was already too strong. Nevertheless, the $27,000 had momentarily reversed from resistance to support. However, bitcoin was rejected again last night after the price peaked at $27,450.
However, this time the $27,000 didn’t hold and bitcoin is dropping to $26,836 on Binance and $25,105 on Bitvavo at the time of writing. This puts the bitcoin price down 1.2% today. The total market capitalization is $520 billion and the dominance is 45.9%. The Fear & Greed Index comes out at 53 (Neutral).
Bitcoin Fear and Greed Index is 53 — Neutral
Current price: $27,114 pic.twitter.com/cNt2OBpTav
— Bitcoin Fear and Greed Index (@BitcoinFear) June 5, 2023
Quiet week in terms of macroeconomic data
Yesterday evening we already published an overview of the most important macroeconomic data for this week. Looks like it’s going to be a very quiet week, we don’t even have any speeches from Federal Reserve members this week.
The week ahead 🎞️:
— Rahul (@rhemrajani9) June 4, 2023
However, it may be “the calm before the storm.” We have the publication of the US consumer price index next week on June 13 and then the interest rate decision of the US central bank on June 14. Perhaps then we will see a real big movement in the prices.
OPEC+ and rising DXY
Yesterday, however, OPEC+, the organization of oil-producing countries and a number of non-OPEC countries, still took place. Saudi Arabia announced a major cut in production in July, on top of a broader OPEC+ deal to limit supply until 2024. The group is trying to boost falling oil prices.
— Tracy (𝒞𝒽𝒾 ) (@chigrl) June 4, 2023
However, this seems to go hand in hand with a rising US dollar. The US dollar index (DXY) has been recovering strongly since yesterday and this increase seems to continue for the time being. Analysts fear there are signs that this is leading to a lake risk off situation and that may not be good news for bitcoin. Bitcoin has become especially like in recent years risk on asset traded.
Strong close & moving higher in early EU trading session.
if USD closes above $104.7, I would consider that as USD strength.
— Skew Δ (@52kskew) June 5, 2023
Bitcoin support and divided analysts
According to analyst Ali Martinez, there is currently a lot of support between $26,360 and $27,170, as a whopping 1 million BTC has been bought here. It wouldn’t be a big surprise if bitcoin hangs between these prices next week. However, keep in mind that the 200-week moving average is now around $26,450. If the price falls through this, it usually becomes like a bearish signal seen by the market.
— Ali (@ali_charts) June 4, 2023
Just as investors are still very cautious, analysts also remain very divided. For example, Mikybull sees a bullish signal arise:
#Bitcoin MACD on the DTF crossed and price is trading above the 21DEMA
This is a sign bullish momentum is about setting in
— Mikybull 🐂Crypto (@MikybullCrypto) June 3, 2023
At the same time, Crypto Tony reports that he short remains, i.e. expected to fall further, as long as the price remains below $27,500.
Remain short if we continue below $27,500. Plan has not changed over the last week pic.twitter.com/1YrbDFUgsb
— Crypto Tony (@CryptoTony__) June 5, 2023
Bitcoin Ordinals launches new version
Meanwhile, the Bitcoin Ordinals platform launched a new version over the weekend. With this, many previously unrecognized inscriptions are now indexed by the Ordinals Protocol as “Cursed Inscriptions”.
1/9 🧵🚀 Excited to announce that after an intense three-day code sprint with @raphjaph, we’ve launched ord v0.6.0! This is a significant step towards our vision for an evolving, resilient, and adaptable ordinals protocol.
— ordinally (@veryordinally) June 4, 2023
The Ordinals platform and the hype about BRC-20 memecoins led to a huge spike in transaction costs last month, reports analytics firm IntoTheBlock. Since then, these costs have fallen sharply again, but are still ten times higher than before.
Bitcoin fees hit a 5-year high in May 2023, surpassing 2017 levels.
🔍 Ordinals inscriptions & BRC-20 tokens drove up demand for blockspace, resulting in soaring fees.
💰 Fees remain ~10x higher than the avg price in Jan despite a slight decrease. pic.twitter.com/hyEK0LPSde
— IntoTheBlock (@intotheblock) June 4, 2023
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