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BTC/USD: Resolving US Debt Ceiling Concerns and Implications for Financial Assets

USD

Short Position:

  • Take Profit: 26,000
  • Stop Loss: 27,600
  • Timeline: 1 Day

Long Position

  • Buy Stop: 27,475
  • Take Profit: 28,500
  • Stop Loss: 26,000

The recent concerns about the debt ceiling in the United States are now being resolved through an agreement between Kevin McCarthy and Joe Biden. However, this development could potentially pose additional challenges for financial assets. For instance, the US dollar index has already risen, while the Dow Jones, S&P 500, and Nasdaq 100 indices have experienced a decline for the second consecutive day, with drops exceeding 0.30%. One major concern currently revolves around the Federal Reserve. Analysts predict a 0.25% interest rate hike by the central bank in June.

Amid ongoing concerns about the global economy, the BTC/USD pair also experienced a decline. Data published on Wednesday revealed a drop in the manufacturing Purchasing Managers’ Index (PMI) to 48.8, indicating a weaker-than-expected recovery.Technical analysis of the BTC/USD pair shows a retreat to a low of 26,852, the lowest point since May 28. The pair has moved below the crucial support level at 27,475, which was the highest point on May 23rd and May 18. Additionally, the pair has slightly dipped below the 50-period moving average, while the MACD histogram has moved below the neutral point.
Consequently, it is likely that the pair will continue to decline, with the next significant level to monitor being at 26,000. Setting the stop-loss for this bearish perspective at 27,475 would be appropriate.