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(Kitco News) - The U.S. House of Representatives passed its highly anticipated debt ceiling deal on Wednesday evening, which helped to boost equities on Thursday but had little effect on cryptocurrency prices, which continued to trade sideways.
The major indices all traded in the green, thanks in part to the optimism brought about by the debt ceiling package overcoming its first major hurdle, with investors now focused on the Senate, which is next in line to vote on the deal. At the market close, the S&P, Dow and Nasdaq finished up 0.99%, 0.47%, and 1.28%, respectively.
Data provided by TradingView shows that it was a volatile day for Bitcoin (BTC), with the top crypto seeing its price spike to a high of $27,425 in the early trading hours, followed by a crash to $26,680, before ultimately settling near the $27,000 level, which has provided consistent support since early May.
BTC/USD Chart by TradingView
The early morning pullback led to June Bitcoin Futures pieces trading “a bit lower,” according to Kitco senior technical analyst Jim Wyckoff, who noted that “Trading this week has turned choppy and sideways.”
Bitcoin futures 1-day chart. Source: Kitco
“The bulls and bears are on a neutral overall near-term technical playing field,” Wyckoff said. “The direction in which prices move above the resistance line or below the support line seen on the chart [above] will likely be the direction of the next significant trending price move.”
The ongoing sideways price action has left cryptocurrency analysts with little to talk about as not much has changed to signal a move in either direction, with market analyst Crypto Tony maintaining a short position on Bitcoin until it manages to climb back above $27,500.
$BTC / $USD - Update
— Crypto Tony (@CryptoTony__) June 1, 2023
No reason to be bullish if we remain below $27,500 legends. I remain in my short position while this condition is met ?? pic.twitter.com/PLhd6ahY8W
But market analyst TecDev has spotted a potentially positive fractal pattern on the Bitcoin chart that points to a possible rally in the near future, similar to what was seen in September 2020.
Now we find out if May 2023 ˜ Sep 2020 #Crypto pic.twitter.com/6X9cz6WGSl
— TechDev (@TechDev_52) June 1, 2023
Altcoins trade flat
The altcoin market was mixed, with the vast majority of tokens trading within 2.5% of the previous day’s price, while a handful of tokens recorded double-digit gains.
Daily cryptocurrency market performance. Source: Coin360
ABBC Coin (ABBC) was the breakout star of the day, surging 84.27% to trade at $0.199, while Global Currency Reserve (GCR), Wilder World (WILD), and Core (CORE) recorded gains of 28.6%, 26.75%, and 22.25%, respectively.
The overall cryptocurrency market cap now stands at $1.129 trillion, and Bitcoin’s dominance rate is 46%.
