The resolution from the Debt Ceiling decision is uncovering but there are alarming signs that need to be observed. Following the slight pump in price for Bitcoin on Friday, other known assets have outperformed the crypto market.
What does that mean for the crypto price movement? Should the disbalance that is happening worry us? Let’s dive in.
BITCOIN
The BTC price bounced off the Support Zone. In the last analysis the bounce was exactly indicated: “…it is quite likely that we will not see the price go further down than $26 500 before a bounce because the buying orders in the zone are well congested and solid.“
The bounce was not that significant to BTC compared to other altcoins.
The current price is located at a Minor Resistance area. As we are approaching the weekend, it is in best interest to stay liquid and map out the important levels. Looking to see lower levels for BTC from the current price.
The Support Zone is still valid, although weakened and moved slightly lower. In order to see a healthy move to the upside, we have to see bulls defending the price close to the current. As of now there are not considerable buying orders, not until $26 300 – $25 750, which means that the consolidation period is not exactly over.
There is an area of minor buying orders stationed between $27 000 – $26 860. The zone can be played as a retracement catch but if the move down is sharper, it will indicate selling pressure taking over. Again, it is best to be aware of the zone and stay away from trading during the days off. Looking to see more sideways movement before next week.
FUNDAMENTAL
The uncertainty surrounding the debt ceiling and the potential for default had created unease in the market, leading to increased volatility. With the debt limit issue temporarily resolved, investors and traders regained confidence, resulting in a more positive sentiment towards crypto, like we saw for the past 48 hours.
The Treasury Department’s ability to pay its bills on time without resorting to extraordinary measures will contribute to a more stable economic environment, which brings the incentive for people to invest and the news are positive for the long vision. This is the reason why we also see the stocks market rip in the recent days.
It is clear that BTC has not followed much of price movement of the S&P500 and that is something to monitor in the coming days.
THE DOLLAR
There is unusual correlation between the DXY and BTC that is worth noting. On Friday the DXY made a positive gain in its value and the same happened in the crypto market. This is not the first time in the last 7 days that we see likeness.
The pump in BTC was mostly caused by the positive news from the Debt Ceiling Decision. However, we should be aware of that disbalance moving forward to this weekend. The similarity has continued for around a week.
Last time that we saw disbalance, DXY pumped along with BTC. A few hours later BTC lost all its gain and even retraced downwards. This event can be last recorded on may 23rd.
SOLANA
SOL did a precise move up once again from the Flipped Support and right to the resistance area. The price action of SOL outperformed the majority of the other currencies, which shows momentary strength in the coin.
The current price is located at the Next Resistance area, which is still valid. We have to remember – a continuous retest of an area is an indicator of an upcoming breakout. With that being said, the SOL price is unlikely to reach above $21.55 at this current state.
The area down to $20.50 is being supported with minor buying orders. That means that a major move down is not to be expected.
The most recent support zone is lacking buying orders and not seeing ones appear in the next 48 hours is not a good sign for the longevity and sustainability of the + $20.20 area.
