Bitcoin Price Falls To $26,300 – When Will The Breakout Come?

Bitcoin (BTC) price has fallen below the $26,300 level after an extended consolidation. The downswing came after the Federal Open Market Committee (FOMC) minutes failed to excite a reaction from BTC. Based on the readings, the Federal Reserve officials were split on support for more interest rate hikes. Nevertheless, they agreed that inflation was still “unacceptably high,” they continue to see a “mild recession” later this year.

Bitcoin Price Suffering The Brute Of Market FUD

Bitcoin price continues to suffer the brute of market Fear Uncertainty and Doubt (FUD), which has limited its upside potential.

IRS Experts Prepare For A Global Clampdown Against Cybercrime

Bitcoin (BTC) price continues to trade in a zone after the FOMC minutes release. Despite the massive sell-off witnessed before the release, possibly because of global inflation fears, the announcement’s failure to give direction about possible rate hikes or pauses has committed to its boring price action. This does not come as a surprise, considering the flagship crypto also failed to react significantly to the interest rate hike on May 2-3.

Meanwhile, as BTC advances with the prevailing load-shedding gear, the United States IRS Criminal Investigation (IRS-CI) has commissioned a pilot program where cyber attachés will deploy to four continents across the globe to combat cybercrime, beginning June.

The experts will focus on tax and financial crimes that use crypto, decentralized finance (DeFi), peer-to-peer (P2P) payments and mixing services as part of their mandate.

The team, constituting four individuals, boasts extensive expertise in investigating cybercrime. They will collaborate with IRS-CI’s law enforcement counterparts in Asia, Europe, South America, and Australia as they deploy to Sydney, Australia; Bogota, Colombia; Frankfurt, Germany; and Singapore for a 120-day detail ending September 2023.

Citing IRS-CI Chief Jim Lee:

In order to effectively combat cybercrime, we need to ensure that our foreign counterparts have access to the same tools and expertise we have here in the United States. This summer, four of our most-skilled special agents will deploy to strategic locations on four continents to ensure that we can continue to build relationships and effectively combat cybercrime on a global scale.

Joe Biden Is A Threat To Bitcoin, Governor Ron DeSantis

On a different but related story, the Republican nominee and Florida Governor Ron DeSantis said President Joe Biden is the biggest threat to BTC.

Leaning into his position as a Bitcoin proponent, DeSantis presented his support for the king crypto as a matter of civil liberties, calling out the government for its overreach and attempts to restrict cryptocurrency. In his words:

You have every right to do Bitcoin. The only reason these people in Washington dislike it is that they don’t control it.

With the 2024 election season warming up, the governor’s remarks reflect those of Democratic presidential candidate Robert F. Kennedy Jr, who hailed BTC last week as an example of democracy and damnation to autocrats.

DeSantis also addressed the recent surge in regulatory enforcement action confronting the digital asset space, accusing the US government of purging the industry with hopes of preserving the reign of those in power. He said:

Bitcoin represents a threat to them. They’re trying to regulate it out of existence.

In an attempt to reassure his stand, DeSantis said he would vehemently oppose any attempts by Congress to leverage new legislation to foster its efforts to ban “things like Bitcoin” by passing new legislation. Further, the Florida governor said that the sitting government could be the death of Bitcoin if Biden advances to the next term.

“The current regime clearly has it out for Bitcoin,” DeSantis said. “And if it continues for another four years, they’ll probably end up killing it.”

Assessing The Probability Of A Bitcoin Price Breakout

Bitcoin (BTC) price at the time of writing is $26,236 after dropping almost 2% in the last 24 hours. The king crypto continues to trade within a tight zone after a 7% drop on May 6. It is battling selling pressure from the 50-day Exponential Moving Average (EMA) at $27,427.

The general outlook for Bitcoin price is bearish after flipping below the 100-day EMA at $26,371, thereby adding to the overhead pressure. As headwinds intensify, BTC could drop further. The $26,200 support level is critical as a break below could open the drains toward the $25,000 level. In the dire case, the flagship crypto could revisit the mid-March lows around $24,000, or worse.

This bearish outlook is supported by the Relative Strength Index (RSI), which was headed south after signaling a call to sell BTC when it crossed below the signal line (yellow band). If traders respond to this call, Bitcoin price could head lower, potentially tagging the aforementioned targets.

Moreover, the Awesome Oscillators (AO) were still in the negative zone, with a hint of bearish resurgence evidenced by the red bar forming, suggesting bulls were losing control.

Converse Case

With analysts predicting that BTC will revisit the $25,000 level, or $24,000 in the dire case, these are the levels where Bitcoin price could execute a trend reversal. For the next few days, traders should expect the flagship crypto to continue the downtrend until it meets buying pressure around the $25,000 level at the confluence between the horizontal line and the 200-day EMA.

A bounce from this supplier congestion zone could see Bitcoin price recover northwards, with the potential to escape the consolidation zone and tag the $30,728 resistance level before collecting buy-side liquidity above.

Once Bitcoin price breaks above the psychological $32,000, it could rally higher, potentially kickstarting the next bull run, according to analysts

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