The start of the year indicated a decent recovery from the lows of the 2022 bear market below $16,000. The market participants were also sure that the crypto markets were entering the recovery phase. However, the bears soon checked in and a couple of regulatory crackdowns added fuel to the fire. Presently, the BTC price remains stuck around $26,000 as bulls lack the strength required to raise above the bearish influence.
The BTC price in the short term hovers within a very narrow range between $26,188 and $25,710. The price is trading just below the crucial resistance at the 200-D EMA and MA levels that may fuel bearish actions ahead. Moreover, the MACD is closer to flashing a buy signal as the lines may soon undergo a bullish crossover. This may raise the levels above the interim resistance, which may further lift the price beyond the symmetric triangle and secure levels above $26,500.
Else, in case of a bearish reversal, the rejection may drag the price lower below $25,000. However, the possibility of a lower reversal may not sustain for long as the traders hold BTC in their wallets. As per the data from Santiment, the Bitcoin supply on the exchanges has dropped to record low levels which is flashing bullish signals in the long term.
The market participants appear to remain uncertain as the uncertain clouds surround the crypto space due to the regulatory crackdown on Binance and Coinbase. Moreover, the SEC believes the majority of the cryptos to be securities, which may further keep the altcoins under bearish influence.
