While Bitcoin resumes its position at the $28,000 levelinvestors are wondering about the future direction of this leading digital asset.
There will the uptrend continueallowing a further rise in the value of Bitcoin, or should we prepare for a possible downside correction?
As we delve into technical and market indicators, we aim to shed some light on these questionings in our Bitcoin price prediction today.
Digital currencies surge amid US debt ceiling talk, propelling Bitcoin above $28,000
The price of Bitcoin (BTC) rose at one point by 3% and the rest of the cryptocurrency market is also showing gains, indicating a potential recovery.
However, this influx of capital was observed only after Kevin McCarthy, the Republican leader, and US President Joe Biden have reached a preliminary agreement to raise the massive federal debt ceiling $32.4 trillion.
This consensus, reached after four consecutive days of 90-minute telephone discussions, is for the moment provisional. Biden has expressed confidence that this deal will prevent the United States from defaulting.
During this time, Kevin McCarthy attributed the delay to Bidenaccusing him of wasting time and repeatedly refusing negotiations over several months.
According to the agreement, U.S. government spending will be limited for the next two years. Above all, costs related to national security will be exempted.
The pact was struck a month after US Treasury Secretary Janet Yellen issued a warning about a potential default risk on June 1.
To the following the announcement of the debt ceilingBitcoin has seen an increased inflow of funds, propelling the prices of the BTC/USD pair up more than 3% in a single day.
This rise confirms former Wall Street trader Macrojack’s assertion regarding the preponderance of tangible assets like Bitcoin, especially since he predicts that the dollar will be “printed into oblivion” i.e. depreciated so much it will have to be printed. He said, “Bitcoin is the fastest horse in the race.”
Meyer suggests that raising the debt ceiling could force the Federal Reserve to step up its money-printing activities.
Although this may cause the value of the USD to depreciate, this could be good for BTCas these two currencies usually exhibit an inverse trading relationship.
“Bitcoin improves security in cyberspace,” says Michael Saylor
In a recent interview with Kitco News, Michael Saylor, the executive chairman of MicroStrategy, has proposed that Bitcoin could be a powerful defense against cybersecurity risks such as deepfakes.
Saylor speaks of a digital “civil war” currently underway, propelled by billions of fraudulent accounts sowing discord among genuine users of digital platforms.
Saylor has over 3 million followers on Twitter and earns nearly 2,000 fake followers a day.
He recounts a case where “1500 bot accounts were deleted from my account in less than an hour”.
The current situation is untenable, he argued. Saylor believes decentralized identities (DIDs) solve deepfakes and various other digital trust issues.
Bitcoin Price Prediction
This Monday morning, Bitcoin is experiencing a 2.5% increasetrading at $27,900. But, before, it was over $28,000 and it’s the first time since May 10 that the world’s largest cryptocurrency broke the $28,000 threshold.
Bitcoin’s upward trajectory has continued for five straight days, including a strong performance this morning.
A significant hurdle for Bitcoin lies at the $28,300 level, as indicated by the “double tap” pattern of the four-hour chart. Recurring candle closes below this level could signify the exhaustion of buyers, indicating a potential transfer of market dominance to sellers.
Key indicators such as RSI and MACD are currently in overbought territorywith the RSI hovering around 76.75 and the MACD forming durable histograms near 171.
There considerable difference between the 50-day EMAapproximately $27,000, and the current trading price of bitcoinnear $28,000, indicates an overbought market, hinting at a possible price adjustment, and a upcoming downside correction.
If Bitcoin cannot cross the $28,300 threshold, investors might have the option to bet on lower prices, aiming for a drop to $27,500 or even $27,000.
On the other hand, if Bitcoin manages to take the plunge and settle above $28,300this may encourage investors to bet on a price increase, with an initial target of $29,000 and potentially a higher level at around $29,450.
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