You are here: Home > articles > Commodities > Forex > Bitcoin recovered above $29k as U.S. debt limit rises
Bitcoin recovered above $29k as U.S. debt limit rises
April 27, 2023 11:23 amVideo
Latest News
- Analysis for GBP/USD on April 16th. The pound should not count on support from Powell April 16, 2024
- Analysis for EUR/USD on April 16th. The southern trend has been put on pause for correction April 16, 2024
- USD/JPY: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- GBP/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- Trading Signals for GBP/USD for April 16-18, 2024: buy above 1.2405 or 1.2450 (21 SMA – 0/8 Murray) April 16, 2024
- EUR/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- AUD/USD: Australian dollar remains under pressure April 16, 2024
- GBP/USD: trading plan for the US session on April 16th (analysis of morning deals). The pound was quickly bought back around April 16, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 16-18, 2024: buy above $62,500 (4/8 Murray – 21 SMA) April 16, 2024
- Technical Analysis – USDCAD blossoms ahead of central bank speeches April 16, 2024
- EUR/USD: trading plan for the US session on April 16th (analysis of morning deals). Fewer people are willing to sell euro April 16, 2024
- EUR/USD. April 16th. Bears continue to advance against the backdrop of strong US statistics April 16, 2024
- Euro, sterling extend weakness April 16, 2024
- GBP/USD. April 16th. British statistics didn’t capture traders’ attention April 16, 2024
- Technical Analysis – EURCHF ticks up after strong losses April 16, 2024
- Technical Analysis – JP 225 index tests crucial support zone April 16, 2024
- Market Comment – Stocks slide, dollar soars as rate cut bets take another hit April 16, 2024
- Forex forecast 04/16/2024: EUR/USD, USDX, Gold and SP500 from Sebastian Seliga April 16, 2024
- GBP/USD: trading tips for beginners for European session on April 16 April 16, 2024
- EUR/USD: trading tips for beginners for European session on April 16 April 16, 2024
Over the past two days, Bitcoin has managed to break the corrective movement near the $27k level. The first factor that contributed to strengthening the bulls’ positions was the collapse of the American bank FRC’s shares. This once again confirmed the vulnerability of the banking system, and BTC received an upward impulse.
The second factor that allowed BTC to recover above $29k was the high level of volatility on April 26th. Sharp changes in price movement direction and attempts to scare both buyers and sellers led to BTC recovering above $29k.
U.S. debt ceiling – the volatility sponsor
Yesterday, April 26th, the U.S. House of Representatives discussed the issue of raising the debt ceiling. Recall that JPMorgan stated that the U.S. debt ceiling could become a problem for the economy as early as May 2023. Therefore, the meeting provoked a sharp increase in volatility in financial markets.
The situation was fueled by the likely sale of BTC coins held by the U.S. government. During the discussion on raising the debt ceiling, Arkham Alert reported that wallets associated with MtGox and the U.S. government were conducting BTC transactions.
As a result, the on-chain aggregator acknowledged the complete passivity of BTC wallets related to the U.S. government and admitted its mistake. The U.S. debt ceiling was raised to $1.5 trillion, which ultimately reassured investors and allowed BTC to continue growing.
Meanwhile, it was reported that the money supply in March had again sharply begun to decline, setting a record for the past 90 years. It can be noted that this process led to the collapse of FRC bank shares and a slowdown in Bitcoin’s bullish movement.
BTC/USD Analysis
Bitcoin has become one of the main instruments used as a highly volatile asset during yesterday’s turmoil in financial markets. The asset managed to retest the $27.2k level within a day and subsequently grew to $30k.
As of 08:00 UTC on April 27th, the volume of liquidated positions in the crypto market amounted to $255 million. Both short and long positions were affected, and BTC price action was heavily manipulated to create intraday bull/bear trap patterns.
As a result, the asset ended the volatile day with the formation of an uncertain Doji candlestick. Despite this, BTC closed positively above the $28k level, which allowed the asset to resume its upward movement and recover above $29k and retest the $29.5k level.
As of 08:00, Bitcoin looks bullish due to the positive resolution of the situation with the increase in the U.S. national debt limit. The technical metrics of the asset are making a smooth reversal from the bottom of the bullish area. The Stochastic made a powerful bullish crossover, and the RSI crossed the 50 level.
At the same time, the MACD is moving above the red zone, which is a positive signal, as the metric is increasingly turning in the flat direction. Given the technical signals, BTC will continue its upward movement and try to make a bullish breakout of the $29.5k level.
Returning to the 90-year record decline in the money supply and turmoil in the banking system, investors are increasingly considering BTC as a store of value. The cryptocurrency’s correlation with gold has reached its highest level in the last two years.
Results
Bitcoin emerged victorious from yesterday’s volatility spike and recovered above $29k. The next target for the cryptocurrency is the $29.5k level, where the local resistance zone is located. Fundamentally, the asset is becoming increasingly attractive due to the crisis in the traditional banking system and the early stage of the cryptocurrency’s bull market.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: