Cryptos trend higher in the wake of successful debt ceiling deal
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(Kitco News) - The cryptocurrency market closed out the week on positive footing as the passage of the debt ceiling deal by both houses of Congress and its imminent signing by President Joe Biden helped relieve the downward pressure on asset prices.
Stocks also traded higher on Friday as the latest nonfarm payroll jobs data greatly exceeded expectations, coming in at 339,000 against the expected 195,000, marking the 14th straight month that job creation came in above what Wall Street economists had expected. At the close of markets, the S&P, Dow and Nasdaq were all in the green, up 1.45%, 2.12%, and 1.07%, respectively.
Data from TradingView shows that after Bitcoin (BTC) bottomed out at $26,590 in the early hours on Friday, the top crypto proceeded to climb higher throughout the trading day to hit a high of $27,345 in the late afternoon.
BTC/USD Chart by TradingView
The course reversal for BTC resulted in June Bitcoin futures prices trading “a bit firmer in early U.S. trading,” according to Kitco senior technical analyst Jim Wyckoff, who noted that there was “Not much new late this week,” and said, “Trading has turned choppy and sideways.”
Bitcoin futures 1-day chart. Source: Kitco
“The bulls and bears are still on a neutral overall near-term technical playing field,” Wyckoff observed. “The direction in which prices move above the resistance line or below the support line seen on the chart will likely be the direction of the next significant trending price move.”
According to market analyst Rekt Capital, Bitcoin is now trading between two key support and resistance levels and is working hard to invalidate a bearish head and shoulders pattern on its 1-day chart.
BTC/USD 1-day chart. Source: Twitter
“Technically, BTC is still trying to retest this downtrending channel that kickstarted the most recent move to ~$28000,” Rekt Capital said. “Successful reclaim would enable a move to the top of the red box for a reclaim attempt there.”
And for those wondering when the next bull market will begin, market analyst Titan of Crypto posted the following tweet highlighting a crossover of the weekly Gaussian Channel as a development that could lead to “fireworks.”
#Bitcoin Gaussian Channel Crossover ????#BTC is taking more time to crossover the weekly Gaussian Channel than it did in the past cycles. But make no mistake about it, the crossover might occur sooner than you think. And when that happens => Fireworks ?? pic.twitter.com/YJQ4upZyyv— Titan of Crypto (@Washigorira) June 2, 2023
Green in the altcoin market
The majority of tokens in the top 200 traded in the green on Friday as the afternoon recovery by Bitcoin encouraged many traders to reenter the market.
Daily cryptocurrency market performance. Source: Coin360
ABBC Coin (ABBC) was the top gainer on the day, increasing by 14.62% to trade at $0.228, followed by a 13.64% gain for Global Currency Reserve (GCR) and an 11.15% increase for Lido DAO (LDO).
The overall cryptocurrency market cap now stands at $1.147 trillion, and Bitcoin’s dominance rate is 45.9%.