FX.co ★ Technical Analysis of BTC/USD for May 30, 2023

Crypto Industry News:

Former BitMEX boss Arthur Hayes has backtracked on his earlier predictions about Bitcoin's price trajectory.

He said the largest crypto asset is unlikely to reach $70,000 this year. However, he adds that 2024 may be bullish for the entire market.

Speaking on the What Bitcoin Did podcast, Hayes predicted that Bitcoin's march above the $70,000 "barrier" would not happen until next year. At the same time, he indicated that the upcoming halving in 2024 will be crucial for determining the trend:

"I think 2024 is going to be a good year. I think we're not going to go over $70,000 this year. Next year is where we're going to go over that, we'll do that, and then we'll see more highs in 2025 and 2026. And then Armageddon comes."

He explained that the Armageddon he is talking about refers to an event like war, driven mainly by money printing and social discontent. As geopolitical tensions rise, Hayes believes BTC is at risk of another collapse in 2025-26.

Hayes said the practice of quantitative easing (increasing the money supply) is essentially putting together a "powder keg that will explode in the third and fourth quarters of this year." While adding that this is what will cause huge volatility in crypto.

Technical Market Outlook:

The BTC/USD pair has broken out from a narrow range and tested the key short-term technical resistance seen at $28,325. The local high was made at the level of $28,446 and then the market pulled-back ovet 3% towards the level of $27,550. The next target for bulls is seen at the level of $29,186 and the intraday technical support is seen at $27,550. The momentum on the H4 time frame chart is strong and positive, but the market has been seen coming off the extremely overbought conditions, so a deeper pull-back is possible.

Weekly Pivot Points:

WR3 - $29,254

WR2 - $28,640

WR1 - $28,255

Weekly Pivot - $28,028

WS1 - $27,645

WS2 - $27,415

WS3 - $26,803

Trading Outlook:

The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.