BTC faces 9-day losing streak below $26,000 in US debt crisis

Sub Levels –

Key Insights:

  • On Saturday, BTC extended its losing streak to eight sessions, the longest since June 2022.
  • The US debt crisis and growing risk of US default and global recession has left BTC in the red.
  • Technical indicators were bearish and suggested a return below $26,000.

Bitcoin (BTC) fell 0.10% on Saturday. BTC closed the day at $26,790 after dropping 0.73% on Friday. Importantly, BTC has extended its losing streak to eight sessions, making it its longest losing streak since June 2022.

After a mixed start to the day, BTC fell to mid-morning lows of $26,713. After escaping the first major support level (S1) at $26,075, BTC climbed to the late afternoon high of $27,071. However, falling short of the first major support level (S1) of $27,343, BTC has returned to below $27,000 and is in the red.

US Debt Ceiling and Recession Fears Push BTC into Negative Region

It was a quiet Saturday trading without US economic data or directional crypto events. However, news related to the US debt crisis continued to linger, with Democrats and Republicans unable to break the deadlock.

US President Joe Biden said on Saturday that talks were progressing and that more would be revealed over the next two days. Biden’s comments will give BTC and the broader crypto market some breathing room, but investors will need an optimistic update to avoid further declines.

Losses were small, however, as the looming banking crisis softened the downside.

the day ahead

A quiet day ahead, with no US economic data affected. The lack of economic data will keep investors interested in news related to the US debt crisis.

US lawmakers and regulatory activity will remain the focus while policymakers resume talks in Washington. Keep an eye out for updates on the SEC vs. Ripple case as well as news related to Binance and Coinbase (COIN).

The news of Binance exiting Canada is still circulating, and we see more newsreels than usual on Coinbase.

We expect the Nasdaq Mini to affect investor sentiment in the final hour. U.S. futures prices should give crypto investors a sense of calm and panic over the deadlocked debt ceiling.

On Friday, the Nasdaq Composite fell just 0.35% while BTC fell 0.73%.

Nasdaq – BTCUSD 140523 daily chart

Bitcoin (BTC) price fluctuations

This morning, BTC rose 0.08% to $26,811. The day started inside a range, with BTC falling to early lows of $26,738 before rallying to highs of $26,816.

BTCUSD 140523 daily chart

technical indicator

Resistance and support levels

R1 – $ 27,003 S1 – $ 26,645
R2 – $ 27,216 S2 – $ 26,500
R3 – $ 27,574 S3 – $ 26,142

BTC needs to cross the first major resistance level (R1) at $27,003 and a pivot at $26,858 to target Saturday’s high of $27,071. A return to $27,000 will suggest an extended bullish session. Cryptocurrencies and U.S. debt ceiling negotiations must be crypto-friendly to support a long-term rally.

If the rally continues, BTC could test the second major resistance level (R2) at $27,216 and the resistance at $27,500. The third major resistance level (R3) is at $27,574.

If the pivot cannot be crossed, the first major support level (S1) remains at $26,645. However, BTC should avoid below $26,500 unless a crypto event causes a drop. The second major support level (S2) at $26,500 should cap the downside. The third major support level (S3) is $26,142.

BTCUSD 140523 hourly chart

Looking at the EMA and the 4-hour candlestick chart (below) was a bearish signal. BTC has broken below the 50-day EMA ($27,518). The 50-day EMA has turned down from the 200-day EMA and the 100-day EMA has turned down from the 200-day EMA, sending a bearish signal.

A breakout of R1 ($27,003) will lead the bulls to reach R2 ($27,216) and the 50-day EMA ($27,518). However, a failure to cross his 50-day EMA will leave S1 ($26,645) in view.

BTCUSD 140523 4-hour chart

This article was originally posted on FX Empire

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The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

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