• The US equities markets welcomed the debt ceiling deal and the May nonfarm payrolls data on June 2 with strong rallies.
• Crypto markets, however, have not responded as strongly to the news.
• Bitcoin (BTC) has been trading close to its 20-day exponential moving average for the past three days, indicating balance between supply and demand.
US Equities Markets Rally
The United States equities markets welcomed the debt ceiling deal and the May nonfarm payrolls data on June 2 with strong rallies. The S&P 500 rose 1.8% during the week while the tech-heavy Nasdaq was up 2%. This was the sixth successive week of gains for the Nasdaq, the first such occasion since January 2020. In addition to this, investors are expecting that Federal Reserve will be in a pause mode during its next meeting which may have acted as a catalyst for this rally.
Crypto Market Remains Relatively Stable
Rallies in traditional markets have failed to trigger a similar performance in Bitcoin (BTC) and other altcoins; however, there is some positive sentiment brewing as several major cryptocurrencies have stopped falling and are trying to start a recovery.
Bitcoin Price Analysis
Bitcoin has been trading close to its 20-day exponential moving average ($27,233) for past 3 days which suggests that bulls are buying near $26500 mark. The 20-day EMA has flattened out and RSI is just below midpoint indicating balance between supply & demand; if buyers manage to break resistance line of descending channel pattern then northward march towards $31000 may begin else it will spend more time inside channel & critical level downside being $25250 which needs to be closely monitored so as avoid any further drop in price towards $20000 mark or lower.
Resistance at 27350 Level
On 4 hour chart bears are guarding immediate resistance of 27350; on downside pair has been forming higher lows near term indicating demand at lower levels increasing chances of upward movement if prices break above 27350 level.
Top 5 Cryptos That Could Lead Rally
If bulls manage to maintain momentum & surmount overhead resistance levels then following top 5 cryptos could lead rally: ADA, QNT, RNDR & RPL which could capitalize on Bitcoin’s bullish trend by breaking out into upside direction & increasing their respective market capitalization values significantly