The United States Treasury Secretary, Janet L. Yellen, warned the United States Congress that if the debt limit is not raised or suspended, the country will run out of money to meet government expenses by June 1. This circumstance has intensified the need for President Joe Biden and lawmakers to achieve a deal fast to avert a U.S. debt default.
Behind the shadow of the U.S. debt default, there was good news on the annual inflation rate in the United States, which reduced to 4.9%. The actual rate was less than the 5% consensus expectation. Despite the drop in inflation, the Consumer Price Index climbed 0.4% on a seasonally adjusted basis in April.
Bitcoin (BTC) has recovered from a low of $25,800 late Friday (12/05), rising to $27,400 early Monday (15/05). Stocks and commodities were both rising at the same time as Bitcoin. We could see that BTC's current hold of the $27,000 level is preparing the cryptocurrency for a run to new highs.
The market recently experienced a selloff but rebounded around $26,000. Current technical analysis of Bitcoin suggest that the market trend will depend on the pivotal point of reclaiming $27,200. If this level is successfully reclaimed, it could indicate an upward trend.
However, if the market fails to reclaim $27,200, it may continue the downtrend. Moreover, reclaiming $27,200 will invalidate the previous breakout. Overall, the market's direction will hinge on this critical level.
Ethereum (ETH) recently experienced a rebound, finding support at the significant level of $1,750. This bounce back suggests a potential bullish trend in the short term. However, caution is advised as there is a possibility of a breakout below the $1,750 support. If this occurs, it could trigger a substantial selloff in the market.
Despite the current intraday bullishness, the likelihood of a breakout below $1,750 remains a possibility.
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