BTC Bulls to Target $29,000 on US Stats and Debt Ceiling Updates

Key Insights:

• On Monday, BTC fell by 1.15% to end the day at $28,096.
• US debt ceiling-related news left BTC on the back foot.
• However, the technical indicators were bullish, signaling a return to $30,000.

On Monday, bitcoin (BTC) fell by 1.15%. Partially reversing a 4.50% gain from Sunday, BTC ended the day at $27,772. Significantly, BTC avoided sub-$27,000 for the first time since May 9.

A bullish start to the day saw BTC rise to a first-hour high of $28,475. Falling short of the First Major Resistance Level (R1) at $28,648, BTC fell to a late afternoon low of $27,550. Steering clear of the First Major Support Level (S1) at $27,174, BTC found late support to end the day at $27,772.

Reports of Republicans Planning to Vote Down the Deal Weighed

It was a quiet Monday session, with the US markets closed for Memorial Day. There were no US economic indicators to influence, leaving investors to track debt ceiling-related news from Washington.

Following the bullish reaction to US President Joe Biden and Speaker of the House Kevin McCarthy reaching a deal, reports of Republicans planning to vote down the deal left BTC in the red.

The Day Ahead

It is a busier Tuesday session. US consumer confidence figures for May will influence the afternoon session. Economists forecast the CB Consumer Confidence Index to fall from 101.3 to 99.0.

A larger-than-expected fall would test buyer appetite as investors track US debt ceiling-related news.

While the numbers will move the dial, US debt ceiling-related news will remain the focal point. Reports of more Republicans planning to vote against the deal would weigh on riskier assets.

However, investors should continue to monitor the crypto news wires. SEC activity, SEC v Ripple updates, and Binance and Coinbase (COIN)-related news would draw interest.

Bitcoin (BTC) Price Action

This morning, BTC was up 0.01% to $27,775. A mixed start to the day saw BTC rise to an early high of $27,806 before falling to a low of $27,620.

BTC Technical Indicators

Resistance & Support Levels

BTC needs to move through the $27,932 pivot to target the First Major Resistance Level (R1) at $28,315 and the Monday high of $28,475. A return to $28,000 would signal an extended bullish session. The US debt ceiling-related news and US economic indicators 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 $28,857 and resistance at $29,000. The Third Major Resistance Level (R3) sits at $29,782.

Failure to move through the pivot would leave the First Major Support Level (S1) at $27,390 in play. However, barring an event-fueled sell-off, BTC should avoid sub-$27,000. The Second Major Support Level (S2) at $27,007 should limit the downside. The Third Major Support Level (S3) sits at $26,082.

Looking at the EMAs and the 4-hourly candlestick chart (below), the EMAs are more bullish. BTC sat above the 200-day EMA ($27,441). The 50-day EMA converged on the 100-day EMA, with the 100-day EMA closing in on the 200-day EMA, sending bullish signals.

A bullish cross of the 50-day EMA through the 100-day EMA would support a breakout from R1 ($28,315) to target R2 ($28,857) and $29,000. However, a fall through S1 ($27,390) and the 200-day EMA ($27,441) would bring the 100-day ($27,186) and 50-day ($26,145) EMAs into view. A fall through the 50-day EMA would send a bearish signal.