The Day Ahead
It is a quieter Saturday session, with no US economic indicators for investors to consider. However, Fed Chair Powell’s speech will likely resonate as investors monitor updates from Washington on US debt ceiling negotiations. Progress toward a debt ceiling deal would support BTC and the broader market.
However, investors should monitor the crypto news wires for SEC v Ripple updates and Binance and Coinbase-related news.
Bitcoin (BTC) Price Action
This morning, BTC was flat at $26,911. A range-bound start to the day saw BTC fall to an early low of $26,902 before steadying.
Technical Indicators
Resistance & Support Levels
BTC needs to move through the $26,932 pivot to target the First Major Resistance Level (R1) at $27,198 and the Friday high of $27,219. A return to $27,000 would signal an extended bullish session. The crypto news wires and US debt ceiling-related news should be crypto-friendly to support an extended rally.
In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $27,484 and resistance at $27,500. The Third Major Resistance Level (R3) sits at $28,036.
Failure to move through the pivot would leave the First Major Support Level (S1) at $26,646 in play. However, barring a risk-off-fueled sell-off, BTC should avoid sub-$26,000. The Second Major Support Level (S2) at $26,380 should limit the downside. The Third Major Support Level (S3) sits at $25,828.
Looking at the EMAs and the 4-hourly candlestick chart (below), it was bearish signals. BTC sat below the 50-day EMA ($27,163). The 50-day EMA pulled back from the 200-day EMA, with the 100-day EMA falling back from the 200-day EMA, sending bearish signals.
A move through the 50-day EMA ($27,163) would support a breakout from R1 ($27,198) to target R2 ($27,484) and the 100-day EMA ($27,510). However, failure to move through the 50-day EMA ($27,163) would leave S1 ($26,646) in view.
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