Altcoins rally as Bitcoin price holds above $27,000

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(Kitco News) – The lack of agreement on raising the U.S. debt ceiling continued to dampen any recovery in financial markets on Tuesday, with stocks trending lower for the day while the cryptocurrency market remains in a lateral support scheme.

At the close of trading in the United States, the three major indices were all in the red, with the S&P down 1.02%, the Dow Jones down 0.60% and the Nasdaq down 1.22 %. Treasury yields rose across the curve, with the benchmark 10-year yield rising to 3.76%, the two-year yield to 4.38% and the 30-year bond yield to 3.98%.

Data provided by TradingView shows that Bitcoin (BTC) bulls managed to rally its price above the $27,000 support/resistance level to hit a daily high of $27,511 in the early hours of trading on Tuesday. BTC has since fallen to support at $27,200.

BTC/USD chart by TradingView

According to Kitco Senior Technical Analyst Jim Wyckoff, the early morning rally for BTC led to “firmer” Bitcoin futures prices in June.

1-day Bitcoin futures chart. Source: Kitco

“The downward price trend on the daily chart has now stopped and turned into sideways trading,” Wyckoff said. “The bulls and bears are now back on an overall short-term technical playing field.”

According to market analyst Michaël van de Poppe, Bitcoin needs to hold above $27,000 in the near term to eventually set up a run to $29,000, with acceleration occurring once the price closes above. above $27,300.

Good move from #Bitcoin, but still exploiting the resistance and without breaking it.

Must hold $27,000, then we can break through $27,300 and reach $29,000.

The acceleration will exceed $27.3,000. pic.twitter.com/mHHi0LxiNp

— Michal van de Poppe (@CryptoMichNL) May 23, 2023

Market analyst Rekt Captial noted that the daily RSI for Bitcoin signals strong bullish divergence, which is a possible signal for upward movement.

#BTC could form an “exaggerated” bullish divergence on the daily RSI

A potentially positive sign for some upside movement, but it’s important to realize that the key resistance to beat is around $27,600 BTC #Crypto #Bitcoin pic.twitter.com/OL5IRY4XPX

— Rekt Capital (@rektcapital) May 23, 2023

This outlook was backed by market analyst Caleb Franzen, who posted the following tweet suggesting that the “current RSI divergence will produce a near-term bullish push.”

I still think the #Bitcoin RSI divergence will produce a short-term bullish push.

While price made lower lows, RSI made higher lows.

Now we see $BTC and the RSI making lows together!

I want to see the price >$27,972 in order to confirm.

Also, GM. pic.twitter.com/lvfGPdBRZ0

— Caleb Franzen (@CalebFranzen) May 23, 2023

Taken together, the consensus is that a major uptrend for Bitcoin is possible once the bulls are able to push its price above $28,000.

Bullish trend in the altcoin market

The majority of the top 200 tokens traded in the green on Tuesday with a handful of projects managing to post double-digit gains, led by Waves (WAVES), which climbed 14.9% to trade at 1, $90.

Daily performance of the cryptocurrency market. Source: Coin360

Other notable gainers include TomoChain (TOMO), Blur (BLUR), Render Token (RNDR) and Kava (KAVA), which saw their prices increase by 13.7%, 12.56%, 11.28% and 11.08%, respectively.

The overall cryptocurrency market capitalization now stands at $1.137 trillion, and Bitcoin’s dominance rate is 46.4%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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