The banking crisis that has hit the US hard has also had consequences for cryptocurrencies. The Fed says that further rate hikes may not be necessary due to the credit tightening. But while many developments favor cryptocurrencies, shallow liquidity favors bears. Bitcoin price can’t hold $27,200.
Cryptocurrencies Comment
Debt ceiling negotiations in the United States are also unsettling cryptocurrency investors. Treasury Secretary Yellen said that as of June 1, the country will have problems with payments. JPMorgan Chase CEO Jamie Dimon recently told Bloomberg that a possible default by the US government could panic stock markets.
The next big question plaguing crypto investors is how Bitcoin would react to such an event. Bloomberg’s latest Markets Live Pulse survey suggests that Bitcoin could become the third safe asset class after gold and Treasuries in the event of a US debt default.
On the other hand, billionaire fund manager Paul Tudor Jones said in a recent statement that he continues to hold Bitcoin. He even underlined that he will always keep some of his portfolio here.
Bitcoin Comment
The bulls are trying to push Bitcoin back into the symmetrical triangle pattern, suggesting strong buying at lower levels. The relief rally is likely to face strong selling at the moving averages and again at the resistance line of the triangle. If the price turns down from the overhead resistance, the bears will struggle to pull the price to $25,250. If this area is also lost, a quick sell-off towards $20,000 could follow.
Above, bulls need to turn $27,600 into support and close above $28,800. In this scenario, $ 31,000 and $ 32,400 levels can be exceeded.
But for now, hopes are fading as Bitcoin has lingered below $27,200 for a long time. The king cryptocurrency is a victim of decreasing liquidity in the market. The cumulative trading volume in the cryptocurrency markets is at $29 billion despite it being a weekday, and altcoins have lost serious blood due to BTC returning from $30,000. The statements to be made by Powell on Friday and the steps to be taken by Hong Kong in June will be decisive for the direction of the market.
