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(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.
That's step one for #Bitcoin, as we reclaim $26,600 and are looking for continuation towards the range highs.
— Michaël van de Poppe (@CryptoMichNL) May 26, 2023
If the recent correction is deviation, we might break to $29,000 next week. pic.twitter.com/SWCH12DW13
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.
For #BTC to get more bullish, it needs to reclaim ~$27600 (black) as support
— Rekt Capital (@rektcapital) May 26, 2023
Price has a few technical steps to go through first before even challenging for the ~$27600 level (black)$BTC #Crypto #Bitcoin pic.twitter.com/OKpdDAYzjC
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.
Politicans debating raising $ 30 trillion US debt limit bad comedy, “kabuki theater.” Facts are: US bankrupt. Unfunded liabilities as Social Security are over $250 trillion. Financial market “derivative assets” measured in quadrillions…thousands of trillions. WTF. Buy G,S, BC.
— Robert Kiyosaki (@theRealKiyosaki) May 24, 2023
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%.
