Market Analysis: The National Debt Ceiling to Be Raised — the Price of Bitcoin Is Growing


US President Joe Biden and top Republican Kevin McCarthy reached a tentative agreement Saturday night to suspend the federal government's USD 31.4 trillion debt ceiling, ending a months-long deadlock. Biden said that the deal is a compromise, and the parties discussing the ceiling increase will not get everything they want.

The deal has yet to pass congressional approval, but the stock market reacted positively as the price of the E-mini S&P 500 futures reached a year's high on Monday morning. The positive effect may intensify tomorrow — after all, today the financiers of the USA, Europe and Britain have a day off (Memorial Day).

But the price of bitcoin seems to have fully reflected the positive impact of the increase in the national debt ceiling; on Sunday, the BTC exchange rate against the US dollar rose by about 4.5%.

The bitcoin chart shows that the BTC price has found support in the area of the intersection:

→ the lower line of the descending channel (shown in red);

→ support from the psychological mark of USD 26k for bitcoin — it showed its effect on May 12.

However, this morning the price of bitcoin is decreasing. As long as the price is above the level of 27,500 (which served as resistance in the second half of May), this decrease can be regarded as a technical correction from the upper line of the red descending channel after the Sunday impulse. Perhaps, after the correction, the bulls will attempt to overcome it.

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