BTC and stocks are poised for a potential rally following reports of a potential deal on the US debt ceiling by lawmakers. The agreement, reached between the White House and House Republicans, has generated positive sentiment in the equities market and is also influencing the cryptocurrency sector.
While Bitcoin has reclaimed the $28,000 level, indicating a possible recovery, other altcoins are also showing signs of a short-term upswing. However, maintaining the rally at higher levels could pose a challenge for the bulls.
Traders are expected to shift their focus to the Federal Reserve’s rate hikes after the debt ceiling deal. The recent hot data on Personal Consumption Expenditures has increased the likelihood of a rate hike at the Fed’s June meeting. Bitcoin and select altcoins will be closely monitored for their potential short-term movements.
In terms of Bitcoin price analysis, the cryptocurrency is currently encountering resistance between the 20-day exponential moving average and the support line of a symmetrical triangle. If the price fails to overcome this zone, bears may attempt to push it towards the pivotal support at $25,250. Conversely, a breakout above the overhead obstacle could lead to further upside.
XRP has formed an inverse head and shoulders pattern, with a potential rally upon a break above the neckline. The altcoin’s 20-day EMA is gradually sloping up, indicating a bullish bias. The breakout above the neckline could propel XRP towards the overhead resistance zone between $0.54 and $0.58.
Arbitrum (ARB) has shown signs of recovery as it moved above the 20-day EMA, with potential resistance at $1.20. A successful breach of this level may lead to further gains towards $1.36 and $1.50. However, failure to sustain above the EMA could result in a decline towards $1.06 and $1.01.
EOS has been trading within a wide range between $0.78 and $1.34, with traders typically buying near support and selling near resistance. The recent bounce from $0.81 suggests the range remains intact, with a potential rise towards $1.11 if the bulls maintain control.
Aave (AAVE) has been following a descending channel pattern, which could serve as a bullish setup. The cryptocurrency experienced resistance near the 20-day EMA but managed to break above it, signaling a possible relief rally. A move towards the 50-day SMA and the resistance line could be expected if the bullish momentum continues.
It’s important to note that these analyses are based on technical chart patterns and should be considered alongside other factors and indicators before making any investment decisions.
