Bitcoin price up today, why?

On March 29, the Bitcoin (BTC) market saw a slight increase as traders aimed for stability above $28,000, a psychological support and resistance level.

At the time of writing, BTC was being traded for over $28,450, its highest level in two weeks. However, profit-taking sentiment among day traders caused the price to drop to $27,850 later in the day.

Despite the drop, BTC was still up about 10% compared to its recent market low below $26,000 on May 25.

The U.S. comes closer to averting a default

The latest gains in Bitcoin’s price came amid cautious optimism about the U.S. averting a default after the weekend’s tentative debt deal.

President Joe Biden and House Speaker Kevin McCarthy confirmed that they had reached an agreement to raise the U.S.’s borrowing limits. This affirmation came a week after Treasury Secretary Janet Yellen warned that the failure to raise the limit could leave the government without cash by June 1.

DEBT CEILING IS APPROVED NASDAQ MAKING 9 MONTH HIGH US TURNING ON MONEY PRINTER AND YOU THINK BITCOIN IS GOING $12,000 ANON ?

— Ash Crypto (@Ashcryptoreal) May 28, 2023

The news left the U.S. dollar, which has risen during the debt deal impasse thanks to its “safe haven” status, in a weak position. Notably, the U.S. dollar index (DXY) dropped by 0.25% in early morning trade but recovered the losses later.

Bitcoin typically trades inversely to DXY — this long-term negative correlation may have prompted its price higher as the greenback fell against a basket of top foreign currencies.

However, a decisive debt deal is considered long-term bearish for Bitcoin on fears that it would remove about $1 trillion worth of liquidity from the market, as Cointelegraph covered here.

Bitcoin technical analysis

From a technical perspective, Bitcoin looks ready for a short-term correction towards $25,000.

Related: Mining difficulty passes 50 trillion — 5 things to know in Bitcoin this week

Notably, the BTC price has consolidated inside a descending triangle range since March 23. On May 29, it tested the range’s upper trendline as resistance and dropped. This pullback can extend until the price hits the lower trendline near $26,500.

However, since the ascending triangle appears after a strong market uptrend, Bitcoin’s overall bias looks skewed to the upside, per the rule of technical analysis. Therefore, should the price break above the upper trendline, it could grow by as much as the triangle’s maximum height.

This puts Bitcoin en route to a possible rally to $31,000 in June, up 10% from the current price level.

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