Make Kitco Your Homepage

Bitcoin price climbs above $26,800 as traders eye resistance at $27,600

Kitco News

Editor note Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!

(Kitco News) - The cryptocurrency and equities markets rebounded on Friday after reports emerged indicating that President Joe Biden and Speaker of the House Kevin McCarthy are “closing in on a deal” to extend the government's debt ceiling for two years.

The prospect of an end to the debt ceiling standoff helped the stock market close out the week on a strong note, with the S&P, Dow and Nasdaq in the green, up 1.30%, 1.00%, and 2.19%, respectively.

Data provided by TradingView shows that Bitcoin (BTC) briefly dipped to a low of $26,360 in the early trading hours on Friday, only to reverse course to hit a daily high just shy of $27,000 in the afternoon before settling back at the $26,800 support level.

BTC/USD Chart by TradingView

“June Bitcoin futures prices were holding steady in early U.S. trading on Friday after hitting a nine-week low Thursday,” said Kitco senior technical analyst Jim Wyckoff.

Bitcoin futures 1-day chart. Source: Kitco

“The bears late this week have re-established a price downtrend on the daily bar chart and have the overall near-term technical advantage,” Wyckoff said. “The path of least resistance for prices is now sideways to lower.”

While Wyckoff sees the possibility of sideways to lower trading in the short-term, Michaël van de Poppe, the founder of MN Trading, noted that the afternoon surge in BTC that lifted its price above $26,600 was the first step in Bitcoin climbing towards the range high, which could possibly see the top crypto climb to $29,000 by next week.

In order for that to occur, market analyst Rekt Captial highlighted that BTC first needs to reclaim the resistance level at $27,600 as support, but warned that it has “a few technical steps to go through first” before it can challenge that level.

And for “Rich Dad, Poor Dad” author Robert Kiyosaki, no technical analysis is needed as the struggles related to the U.S. debt ceiling and the “quadrillions of derivative assets” are all the proof he needs to show that investing in gold, silver and bitcoin is the way to go.

Altcoins also gained ground on Friday

The majority of altcoins in the top 200 traded in the green on Friday as the turnaround in Bitcoin price helped relieve the downward pressure the market had been experiencing since Tuesday, allowing token prices to stabilize.

Daily cryptocurrency market performance. Source: Coin360

Cocos-BCX (COCOS) was the biggest gainer on the day, increasing by 10.3% to trade at $1.58, while Blur (BLUR) climbed 8.11% and Arbitrum gained 5.21%.

The overall cryptocurrency market cap now stands at $1.123 trillion, and Bitcoin’s dominance rate is 46.2%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.