Bitcoin Price: In the past 24 hours, the price of Bitcoin has surged by 2.5%, reaching $27,896 and contributing to an overall 2% gain in the cryptocurrency market. Bitcoin has experienced a 4% increase over the past week, although it has declined by 5% in the last 30 days. The recent rise has pushed Bitcoin above its 21-weekly exponential moving average (EMA), indicating the potential for further upward movement.
Bitcoin’s upward trajectory also bodes well for lower market cap altcoins and meme tokens, as these cryptocurrencies often follow Bitcoin’s lead. Additionally, a recent agreement between Republican lawmakers and the White House regarding the US debt ceiling could further bolster Bitcoin and the broader cryptocurrency market when ratified by the US Congress.
Examining Bitcoin’s chart reveals promising signs of a breakout that may continue in the near future.
The relative strength index (RSI) for Bitcoin reached 80 over the weekend, and while it has slightly decreased in the past 24 hours, it remains close to 70, suggesting the possibility of further positive developments. Moreover, Bitcoin’s 30-day moving average has significantly surpassed its long-term 200-day average, as has its actual price. These factors indicate that Bitcoin’s momentum is currently on the rise, with a potential price surge to $28,000 anticipated in the coming days.
As previously mentioned, once the US Congress approves the deal on the federal government’s debt ceiling, Bitcoin is likely to experience another rally. The resolution of the debt ceiling risk, which loomed over the cryptocurrency market and financial markets in general for the past couple of weeks, will remove a significant barrier to price growth.
Furthermore, recent indications suggest that the global economy is steadily improving. The Eurozone managed to avoid a recession in the first quarter of 2023, contrary to earlier projections. The International Monetary Fund (IMF) has revised its forecasts and predicts that the UK will also avoid a recession this year. Additionally, the US economy has been demonstrating positive signs by adding jobs and surpassing earnings expectations.
It is worth noting that Hong Kong will introduce new regulations on June 1, allowing retail investment in cryptocurrencies. This shift in Chinese policy toward crypto marks a significant development and further contributes to the positive outlook for the cryptocurrency market.
Considering all these factors, a positive picture emerges, indicating that growing confidence in the global economy will likely translate into an increasing appetite for risk-on assets like cryptocurrencies. Interestingly, the best-performing coins in the current market are not the established cryptocurrencies but a range of newer altcoins.
Examples of such altcoins include Injective (INJ), Lido (LDO), Quant (QNT), and Sui (SUI), which have recorded gains of 14%, 6.1%, 6%, and 5% respectively over the past 24 hours.
Bitcoin’s recent gains have stimulated greater interest in riskier altcoins, which tend to experience more significant declines during selloffs but also enjoy stronger rebounds and rallies. If Bitcoin benefits from the approval of the aforementioned deal by Congress, it is highly likely that altcoins will experience a rally as well, potentially surpassing the performance of the original cryptocurrency.
This rally may extend to meme tokens, which have demonstrated impressive performance in recent months. For example, Pepe (PEPE) has risen by approximately 350% in the last 30 days, while Wojak (WOJAK) has gained 9% today and 100% over the past month.
However, it’s important to note that meme tokens can quickly fall out of favor, with newer meme coins often overtaking previous leaders. Sponge (SPONGE) and Wall Street Memes (WSM) are among the emerging meme tokens that may garner attention in the future.