Bitcoin has shown great resolve in maintaining itself above the $25,000 mark, making many investors remain bullish. With the U.S. House and Senate committees reaching a debt ceiling deal, investors think the markets might just survive for a tad bit longer.
Bitcoin reacted to this news with a +2.58% today and is currently sitting at $27,193.
Previous Analysis
Bitcoin’s expected downward move to around$24,900 did not happen as Bitcoin found new strength on May 25, 2023. The asset rose +8.88% in the span of 4 days and by May 28, BTC had touched $28,468. However, it did not stay at this price for too long.
A massive sell-off ensued from May 29 through to June 1, 2023, as the general market was uncertain about the U.S. debt ceiling deal.
Bitcoin Next Week
On March 29, 2023, BTC entered into a multi-month falling wedge that is now almost coming to a close. Falling wedges have a 63% chance of breaking out to the upside. If Bitcoin breaks out from the chart pattern, expect it to rise +12.84% to $30,252. From there, the $30k level should provide some resistance before BTC makes a decision to either respect it or break through it.
On June 2, 2023, Bitcoin saw a sudden spike in price – rising over 2% in a matter of hours.
Bitcoin Bullish Catalyst
Bitcoin, and indeed the whole cryptocurrency industry, is a strange asset class. In last week’s analysis, we saw two things:
“If they raise the debt ceiling, they have to raise interest rates, which will hurt businesses and Americans. If they don’t raise the debt ceiling, the entire U.S. economy crashes and it will hurt Americans. Either way, there is pain.”
Vincent Munene, Writer at Blockzeit
On May 31, the House committee passed the Bill to raise the debt ceiling
A day later, the US Senate also passed the bill to raise the debt ceiling.
According to our previous prediction, one of two things will happen: Interest rates are going to go up, and consequently, Americans and their businesses are going to suffer.
On this news, Bitcoin price spiked and might be looking to go up even further as the results of raising the debt ceiling start to manifest upon the nation of America.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decisions based solely on what you read here.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.
