BTC Bulls to Target $27,500 with Debt Ceiling Talks Eyed

Key Insights:

• On Saturday, BTC gained 0.80% to end the session at $27,126.
• Hopes of progress toward a debt ceiling deal and easing Fed Fear delivered support.
• However, the technical indicators are mixed, signaling a choppy session.

On Saturday, bitcoin (BTC) gained 0.80%. Following a 0.19% rise from Friday, BTC ended the day at $27,126. Significantly, BTC wrapped up the day at the $27,000 handle for the first time in three sessions.

A bearish start to the day saw BTC fall to an early morning low of $26,863. Steering clear of the First Major Support Level (S1) at $26,646, BTC rose to a late afternoon high of $27,168. However, falling short of the First Major Resistance Level (R1) at $27,198, BTC eased back to end the day at $27,126.

US Debt Ceiling News and a Dovish Fed Chair Powell Delivered Support

It was a quiet Saturday, with no crypto events to move the dial. The lack of crypto news left investors to consider Fed Chair Powell’s less hawkish comments from Friday. While Powell said that the June policy decision was uncertain, Powell said rates could end lower than previously anticipated, with tighter credit conditions doing the job.

US debt ceiling news also delivered support. On Saturday, reports of US President Joe Biden and Speaker of the House Kevin McCarthy planning to speak as early as Sunday raised hopes of a deal to avoid a US default.

The Day Ahead

It is a quiet Sunday session, with no US economic indicators for investors to consider. However, investors should monitor updates from Washington on US debt ceiling negotiations.

Progress toward a debt ceiling deal would support BTC and the broader market. US President Joe Biden and Speaker of the House Kevin McCarthy could hold further talks today.

However, investors should track the crypto news wires for SEC v Ripple updates and Binance and Coinbase (COIN)-related news.

Bitcoin (BTC) Price Action

This morning, BTC was up 0.26% to $27,196. A bullish start to the day saw BTC rise from an early low of $27,090 to a high of $27,297. BTC briefly broke through the First Major Resistance Level (R1) at $27,242.

BTC Technical Indicators

Resistance & Support Levels

BTC needs to avoid the $27,052 pivot to retarget the First Major Resistance Level (R1) at $27,242 and the morning high of $27,297. A return to $27,250 would signal an extended bullish session. The crypto news wires and US debt ceiling-related news should be crypto-friendly to support an extended rally.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $27,357 and resistance at $27,500. The Third Major Resistance Level (R3) sits at $27,662.

A fall through the pivot would bring the First Major Support Level (S1) at $26,937 into play. However, barring an event-fueled sell-off, BTC should avoid sub-$26,500. The Second Major Support Level (S2) at $26,747 should limit the downside. The Third Major Support Level (S3) sits at $26,442.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was mixed signals. BTC sat below the 100-day EMA ($27,451). The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA eased back from the 200-day EMA, sending mixed signals.

A move through R1 ($27,242) would support a breakout from R2 ($27,357) to target 100-day EMA ($27,451) and $27,500. However, a fall through the 50-day EMA ($27,137) would bring S1 ($26,937) into view. A fall through the 50-day EMA would be a bearish signal.