Focus Bitcoin eyes $28k as investors monitor debt-ceiling votes

Date: 2023-05-31 10:00:26
Focus Bitcoin eyes $28k as investors monitor debt-ceiling votes
The broader cryptocurrency market consolidated on Tuesday following the brief breakout of Bitcoin above $28,400 over the holiday weekend, with investors now focused on whether or not the debt-ceiling deal reached in the U.S. can make it through a divided Congress before funds dry up.Stocks traded mixed, with a strong performance in the tech sector helping to boost the Nasdaq while both the S&P and Dow struggled under the weight of debt ceiling uncertainty, with Congress set to vote on the proposed deal on Wednesday. At the close of markets, the Nasdaq finished in the green, up 0.32%, while the S&P finished flat and Dow finished in the red, down 0.15%.Bitcoin traded in a narrow range on Tuesday, with a slight upward trend. Data provided by TradingView showed that Bitcoin briefly hit a high of $28,100 in the morning hours, before dipping to $27,615 in the afternoon and then climbing back above $27,800.The strong showing by Bitcoin over the holiday weekend helped push June Bitcoin futures to a three-week high in early trading on Monday, according to Kitco senior technical analyst Jim Wyckoff.“A price downtrend on the daily bar chart has been negated and the bulls have momentum and have gained the slight overall near-term technical advantage,” Wyckoff said.According to the latest Trade Letter from Gunter Lackmann at MN Trading, following the breakout to $28,400 on Sunday, Bitcoin needs to hold above $27,000 during the week if it hopes to continue its positive momentum.“A drop under 27.5k back into the consolidation range would negate the potential end of the ABC correction, and a new low towards 25k could follow,’ Lackmann said. “News wise all this would take is a “surprise” twist regarding the deal or light regulatory fud [fear, uncertainty and doubt] towards crypto this week.”MN Trading CEO Michaël van de Poppe posted the following tweet outlining this scenario and highlighting the importance of Bitcoin holding the $27,200 - 27,400 support level.While nothing is certain when it comes to trading cryptocurrencies, market analyst Moustache noted that the Bitcoin 20-day and 200-day moving averages are about to make their first golden cross in history, which is a signal that “It s time to put the dark times behind us.”

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