Why is Bitcoin price up today?
Bitcoin News

Why is Bitcoin price up today?

Bitcoin price rallied amid cautious optimism over a tentative deal to lift the U.S. debt limit.

Why is Bitcoin price up today?




 markets posted modest gains at the beginning of the March 29 trading session as traders sought stability above $28,000, a psychological support andresistance level.

At the time of writin BTC’s price changed hands for over $28,450, its highest level in two weeks. However, short-term profit-taking sentiment among day traders pushed the price lower toward $27,850 later in the day.

BTC/USD four-price chart. Source: TradingView

Still, BTC was up about 10% compared to its recent market low below $26,000 on May 25.

The U.S. comes closer to averting a default

The latest Bitcoin gains appeared amid cautious optimism about the U.S. averting a default after the weekend’s tentative debt deal.

President Joe Biden and House Speaker Kevin McCarthy confirmed that they reached an agreement to raise the U.S.’s borrowing limits. The affirmation came a week after Treasury Secretary Janet Yellen’s warning that the failure to raise the limit could leave the government without cash by June 1.

The news left the U.S. dollar, which has risen during the debt deal impasse thanks to its “safe haven” status, in a weak spot. Notably, the U.S. dollar index (DXY) dropped by 0.25% in early morning trade but recovered the losses later.


Stay safe in Web3. Learn more about Web3 Antivirus →

Bitcoin typically trades inversely to DXY — this long-term negative correlation may have prompted its price higher as the greenback fell against a basket of top foreign currencies. 

DXY and BTC/USD daily correlation coefficient. Source: TradingView

However, a decisive debt deal is considered long-term bearish for Bitcoin on fears that it would remove about $1 trillion worth of liquidity from the market, as Cointelegraph covered here

Bitcoin technical analysis

From a technical perspective, Bitcoin looks ready for a short term correction toward $25,000.

Related: Mining difficulty passes 50 trillion — 5 things to know in Bitcoin this week

Notably, the BTC price has consolidated inside a descending triangle range since March 23. On May 29, it tested the range’s upper trendline as resistance and dropped. This pullback can extend until the price hits the lower trendline near $26,500.

BTC/USD daily price chart. Source: TradingView

But, since the ascending triangle appears after a strong market uptrend, Bitcoin’s overall bias looks skewed to the upside, per the rule of technical analysis. Therefore, should the price break above the upper trendline, it could grow by as much as the triangle’s maximum height. 

That puts Bitcoin en route to a possible rally to $31,000 in June, up 10% from current price level.

Leave feedback about this

  • Quality
  • Price
  • Service


Add Field


Add Field
Choose Image
Choose Video