Bitcoin (BTC) made major gains in the market, breaking above the key $27,200 level.​

The breakthrough sparked speculation among traders and investors about the future direction of Bitcoin's price.​

A key indicator to watch in the coming days is the 50-day exponential moving average (EMA), which has the potential to act as support and trigger a potential rally.​

As Bitcoin continues its price action, market participants eagerly await further developments to assess the strength of the current bullish momentum.

Paul Tudor Jones: Bitcoin faces 'real problems' in the US

Billionaire hedge fund manager Paul Tudor Jones believes that Bitcoin faces major challenges in the United States due to the poor regulatory environment.​

此外，他对未来通货膨胀率较低的预期削弱了加密货币的积极前景。

Given these factors, Jones expressed doubts about Bitcoin’s appeal in the coming months.

After the collapse of FTX in November 2022, the regulatory landscape in the United States changed, leading to greater caution about the cryptocurrency market.​

Recent statements from hedge fund manager Paul Tudor Jones suggest he is taking a more cautious stance on Bitcoin compared to his previous comments.​

He stressed the importance of holding cash while expressing confidence in the Fed's ability to address inflation concerns.

While Jones acknowledged Bitcoin’s immediate challenges, he also expressed confidence in its long-term potential.​

He noted that its main appeal is that humans cannot manipulate its supply, which is why he plans to hold Bitcoin.

Crypto investment funds experience 4 consecutive weeks of outflows

Digital asset investment funds saw a net outflow of $54 million last week, marking the fourth consecutive week of outflows, according to a report published by CoinShares on Monday.​

The continued outflow of such large amounts of money shows that the negative sentiment is not limited to a small number of investors, but that more and more people are withdrawing money from crypto investment funds.​

The report highlights that of the $54 million that exited the market, $38 million was in Bitcoin-related products.​

Over the past four weeks, Bitcoin’s total outflows have reached $160 million, accounting for approximately 80% of the total outflows of all cryptocurrencies during the same period.

As net outflows of crypto investment funds continue to increase, cryptocurrency prices have seen a significant decline, falling from $28,000 to $26,000 in 10 days.

U.S. debt ceiling talks and retail sales data weigh on dollar markets

The U.S. Dollar Index (DXY), which measures the greenback's value against a basket of six major currencies, rose 0.04% to 102.45 on Tuesday.​

Today, the U.S. Economic Record will release a powerful retail sales report for April. Retail sales are expected to rise 0.8% in April, with core retail sales expected to rise 0.5%.

Separately, House Republicans and the White House are set to begin critical U.S. debt ceiling negotiations on Tuesday.​

President Biden plans to meet with House Speaker Kevin McCarthy and other congressional leaders to discuss the debt ceiling.​

On Monday, U.S. Treasury Secretary Janet Yellen reiterated her concerns, saying the U.S. could default in early June if Congress fails to act.

The dollar has been gaining some bets ahead of Tuesday's release of the outcome of U.S. debt ceiling negotiations and U.S. retail sales data.

bitcoin price

Bitcoin is currently trading at $27,126, down 0.48% on Tuesday. After two days of recovery, the BTC/USD pair faced some pressure on Tuesday amid mixed sentiment prevailing in the market.

Resistance at $26,800 on the four-hour chart has now turned into support, providing a potential reversal point for Bitcoin.

Two important technical indicators, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), are currently indicating that the market is entering a buy zone.

This suggests that if Bitcoin manages to hold above $26,800, a bullish rally to $27,800 or $27,500 is very likely.

Notably, the 50-day exponential moving average (EMA) is acting as a significant resistance near $27,500, indicating that bearish sentiment remains in the market.