Bitcoin traded below $28,000 on May 29, as traders wary of a fresh correction following the weekend's bullish momentum.
BTC Price Chart – 1 hour | Source: TradingView
Stock market futures rallied Monday night after the Biden administration and Republican lawmakers reached a tentative agreement on raising the US debt ceiling.
Dow Jones futures were up 72 points, or 0.2%, while S&P 500 futures were up 0.3% and Nasdaq-100 futures were up 0.5%.
President Joe Biden and Speaker of the House, Kevin McCarthy, reached an agreement to raise the debt ceiling and avoid default by the end of the week, with Congress set to vote on the legislation as early as Wednesday. Lawmakers have not signaled they intend to return to Capitol Hill anytime soon to implement the deal. The support of both Republicans and Democrats is needed for the bill agreement to pass.
The deal came just days before June 5, the earliest date by which the Treasury Department signaled that the United States may not be able to meet its debt obligations.
Protracted negotiations between the White House and congressional leaders have raised concerns among investors that a U.S. debt default may be imminent. Wall Street has faced persistent inflation and a banking crisis this year.
Stocks closed higher on Friday. Nasdaq Composite and S&P 500 ended last week in the green. The market was closed on Monday for Memorial Day.
Investors will also keep an eye on May jobs data, due on Friday, while the April Labor Statistics and Job Openings Survey from the Bureau of Labor Statistics will be released on Friday. The forth day. HP Inc and Salesforce will report earnings on Tuesday and Wednesday, respectively.
Gold prices fell on Monday (May 29), as the U.S. move towards a debt ceiling agreement coupled with concerns around the possibility of higher interest rates for longer dented demand for gold.
At the end of the session, the spot gold contract fell 0.1% to $1,944.1 an ounce, hovering near a two-month low. Gold futures were mostly flat at $1,943.3 an ounce.
Oil prices rose on Monday (May 29), after US leaders reached a debt ceiling agreement and helped prevent default in the economy and the world's largest oil consumer.
Ending the session, the Brent oil contract increased 66 cents, or 0.9%, to $77.61 a barrel. The WTI oil contract added 75 cents, or 1%, to $73.42 a barrel.
Data from TradingView shows BTC/USD volatility gradually cooling off after a surprise weekly close just above $28,000.
With US markets closed for the Memorial Day holiday, crypto markets are getting quieter, traders are awaiting a congressional vote on a proposed deal to expand the US debt ceiling. .
Meanwhile, Bitcoin, up 4.4% on May 28, however, this rally does not convince everyone that the bulls can now have the upper hand.
BTC/USD chart with caption | Source: Crypto Tony
Crypto trader Tony is still leaning to the downside, saying the market still has room for a return to the $23,000 bottom.
“IF closes back below $27,500, I will close my long position and look for a short position.”
The DecenTrader trading suite further noted that short positions are increasing, despite many being liquidated on May 28.
However, Material Indicators has warned that key indicators referring to the 200-week moving average are still acting as support, with one of the closest being at $26,000.
An accompanying chart shows Binance's BTC/USD order book, with increasing bid Liquidity and currently sitting around $27,000.
Binance BTC/USD order book data | Source: Material Indicators
On the Altcoin side, most projects were in the red on the day after Bitcoin failed to sustain gains above $28,000.
Projects like Optimism (OP), Render Token (RNDR), SingularityNET (AGIX), Casper (CSPR), Flare (FLR), Fantom (FTM), Conflux (CFX), Pepe (PEPE), KAVA (KAVA), MINA (MINA), Polygon (Matic)… all dropped from 3-8%.
Source: Coinmarketcap
After failing to hold onto its bullish momentum, Ethereum (ETH) showed a slight correction, establishing a local intraday bottom at $1,879 and is currently working to retest the $1,900 area.
ETH price chart – 1 hour | Source: TradingView
The column “Coin Price today” will be updated at 9:00 daily with general market news, readers are welcome to follow.
