After weeks of insecurity, Bitcoin has finally consolidated at a key price juncture of $27,000. Some experts have predicted this step earlier, while others have been less optimistic due to upcoming macroeconomic predictions in the USA. But, the price stabilization in the past 10 days will probably usher in something else – a bullish breakout that we’ve been waiting for that’ll take the price over $30,000 and hopefully beyond.
This has been the case with previous breakouts, although this time, Bitcoin must go against the US debt ceiling talks. They should come next week, with most expert predicting that the debt limit will be lifted to avoid a default on June 1. But, even in these economically uncertain times, Bitcoin manages to persevered and outrun all expectations.
A Bullish Breakout Coming?
Bitcoin’s latest move is very similar to that of early April. Its 12-hour chart is now ranging between $27,800 and $28,700 for 11 days, just like in April. That was followed by a breakout that took the price much higher, and now many question if the same thing can happen. This kind of movement shows a conflict. Traders are not sure about the direction of the next price trend. There’s a balanced demand between traders and investors, which is typically brought on by big events and high price volatility. To make it simple, Bitcoin traders are waiting for a big event to start a landslide. By landslide, we mean pushing Bitcoin’s price in any direction, but 9 times out of 10, it’ll be an upward trend.
The big event traders are waiting for could come in just two days. On May 25, SEBA will announce the annualized gross domestic product for the first quarter, following by durable goods reports a day later. The US debt ceiling fight will be another major event that could spark Bitcoin’s price either way. Talks are set for next week, with everyone predicting that the debt ceiling will be lifted to avoid a default in June. Nothing has been agreed so far, but that could be the catalyst that sends Bitcoin price flying either way.
On the other hand, Bitcoin quarterly futures are much popular among whales. These contracts trade at a slight premium, although their current price is not similar to early April. Traders are currently less optimistic about BTC trading compared to April, which kind of curves the picture.
What’s Next?
If we had the answer to that, we’d buy all the Bitcoins we could afford. But, everything points to an upward price trend. The current technical data points to a bullish breakout, and we know that it’s been a long time coming. Currently, the only major obstacle is the US debt ceiling fight which could have repercussions on Bitcoin’s long term price.
The good news is that we won’t need to wait for long to see what happens. Talks are scheduled for next week, so it won’t be long before we see if Bitcoin has another bullish run in it.