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(Kitco News) – The lack of an agreement on raising the U.S. debt ceiling continued to put a damper on any rallies in financial markets on Tuesday, with stocks trending down for the day while the cryptocurrency market remains in a sideways holding pattern.
At the close of markets in the U.S., the three major indices were all in the red, with the S&P down 1.02%, the Dow down 0.60%, and the Nasdaq down 1.22%. Treasury yields moved higher across the curve with the benchmark 10-year yield rising to 3.76%, the two-year climbing to 4.38%, and the 30-year bond rising to 3.98%.
Data provided by TradingView shows that Bitcoin (BTC) bulls managed to rally its price back above the $27,000 support/resistance level to hit a daily high of $27,511 in the early trading hours on Tuesday. BTC has since drifted down to support at $27,200.
BTC/USD Chart by TradingView
The early morning rally for BTC led to “firmer” June Bitcoin futures prices on Tuesday, according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“The price downtrend on the daily chart has now stalled out and turned into sideways trading,” Wyckoff said. “Bulls and bears are now back on a level overall near-term technical playing field.”
According to market analyst Michaël van de Poppe, Bitcoin needs to hold above $27,000 in the short term to possibly set up a run to $29,000, with acceleration happening once the price closes above $27,300.
Good move of #Bitcoin, but still tapping resistance and not breaking through it.
Needs to hold $27K and then we can break through $27.3K and run to $29K.
The acceleration will come above $27.3K. pic.twitter.com/mHHi0LxiNp
— Michaël van de Poppe (@CryptoMichNL) May 23, 2023
Market analyst Rekt Captial noted that the daily RSI for Bitcoin is signaling a strong bullish divergence, which is a possible signal for some upside movement.
#BTC may be forming an “exaggerated” Bullish Divergence on the Daily RSI
A potentially positive sign for some upside movement however important to realise that the key resistance to beat is ~$27600$BTC #Crypto #Bitcoin pic.twitter.com/OL5IRY4XPX
— Rekt Capital (@rektcapital) May 23, 2023
This outlook was further supported by market analyst Caleb Franzen, who posted the following tweet suggesting that the current “RSI divergence will produce a bullish thrust on a short-term basis.”
I still think that the #Bitcoin RSI divergence will produce a bullish thrust on a short-term basis.
While price made lower lows, RSI made higher lows.
Now we’re seeing $BTC & the RSI making higher lows together!
I want to see price > $27,972 in order to confirm.
Also, gm. pic.twitter.com/lvfGPdBRZ0
— Caleb Franzen (@CalebFranzen) May 23, 2023
Taken together, the consensus is that a major uptrend for Bitcoin is possible once bulls are able to push its price above $28,000.
Uptrend in the altcoin market
The majority of tokens in the top 200 traded in the green on Tuesday with a handful of projects managing to post double-digit gains, led by Waves (WAVES), which climbed 14.9% to trade at $1.90.
Daily cryptocurrency market performance. Source: Coin360
Other notable gainers include TomoChain (TOMO), Blur (BLUR), Render Token (RNDR) and Kava (KAVA), which saw their prices increase 13.7%, 12.56%, 11.28% and 11.08%, respectively.
The overall cryptocurrency market cap now stands at $1.137 trillion, and Bitcoin’s dominance rate is 46.4%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.