Bitcoin (BTC) Prices, Charts, and Analysis:
- Bitcoin edges higher but price action lacks conviction.
- US debt ceiling talks may provide the next driver.
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US President Joe Biden is “confident we’ll get a budget deal” after talks yesterday with House Speaker Kevin McCarthy about the looming debt ceiling and the possibility of a US debt default. Republican McCarthy added to the meeting’s positive tone, saying “we’ve already taken default off the table” and that “the structure of how we negotiate has improved.” The more optimistic tone between the two sides boosted risk markets on Wednesday. The US dollar extended its recent rally, the Nasdaq index hit a nine-month high, while the S&P 500 neared levels last seen in late August.
While the debt ceiling talks gave risk markets, in general, a boost higher, Bitcoin was also helped by yesterday’s news that Tether, the largest asset-backed stablecoin, will invest up to 15% of its net earnings in Bitcoin on a monthly basis. . Tether recently announced a net profit of about $1.5 billion.
The cryptocurrency market joined the rally as Bitcoin bounced off the support around $26,600. The largest cryptocurrency by market cap is currently hovering around $27,400. While we may see a rally in the coming weeks, the recent move higher lacks conviction and remains vulnerable to a short-term sell-off. The previously mentioned support around $26,600 needs to hold if BTC/USD is to rally higher as there is not much in the way of any technical support before $24,255 appears if the sell-off continues. If the move higher continues, resistance from the 20- and 50-day moving averages, currently at $27, $957, and $28,446 respectively, must be broken to allow a retest of the recent double top of $30,000.
Bitcoin (BTC/USD) Daily Price Chart – May 18, 2023
The Ethereum/Bitcoin chart is in an interesting place as 0.06787 is proving difficult to break while the 20 and 50 day moving averages are currently providing support around 0.06630. This narrow range is likely to break soon.
Daily chart of the difference between Ethereum / Bitcoin (ETH / BTC) – May 18, 2023
Charts via TradingView
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