The Day Ahead It is a quiet Sunday session, with the US markets closed on Monday for Memorial Day. With no US economic indicators for investors to con
The Day Ahead
It is a quiet Sunday session, with the US markets closed on Monday for Memorial Day. With no US economic indicators for investors to consider, the news of the US likely to avoid a catastrophic default should provide support throughout the day. Congress will vote on the deal this Wednesday.
However, investors should continue to monitor the crypto news wires. SEC activity, SEC v Ripple updates, and Binance and Coinbase (COIN)-related news would be likely focal points.
Bitcoin (BTC) Price Action
This morning, BTC was up 0.99% to $27,152. A bullish start to the day saw BTC rise from an opening price of $26,803 to a high of $27,191. BTC broke through the First Major Resistance Level (R1) at $27,008 and the Second Major Resistance Level (R2) at $27,130.
Reports of US President Joe Biden and Speaker of the House Kevin McCarthy reaching a tentative debt ceiling deal supported the early breakout.
BTC Technical Indicators
Resistance & Support Levels
BTC needs to hold above R2, R1, and the $26,797 pivot to target the Third Major Resistance Level (R3) at $27,463 and $27,500. A move through the morning high of $27,191 would signal an extended bullish session. The news wires should be crypto-friendly to support an extended rally.
In the event of an extended rally, BTC would likely test resistance at $28,000.
A fall through the Major Resistance Levels and the pivot would bring the First Major Support Level (S1) at $26,675 into play. However, barring an event-fueled sell-off, BTC should avoid sub-$26,500 and the Second Major Support Level (S2) at $26,464. The Third Major Support Level (S3) sits at $26,131.
Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs are more bullish. BTC sat above the 100-day EMA ($27,050). The 50-day EMA narrowed to the 100-day EMA, with the 100-day EMA closing in on the 200-day EMA, sending bullish signals.
A move through the 200-day EMA ($27,411) would support a breakout from R3 ($27,463) to target $28,000. However, a fall through R2 ($27,130), the 100-day EMA ($27,050), and R1 ($27,008) would bring the 50-day EMA ($26,803) and S1 ($26,675) into view. A fall through the 50-day EMA would send a bearish signal.
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