Bitcoin (BTC) price has soared to $28,000 in the last 24 hours after trading below this level for most of May.
BTC, which rose to $ 28,450, could not hold at this level in the current situation and fell below $ 28,000 again.
Bitcoin (BTC) Price Hits $28,000 After a Fluctuating Month
For several months now, Bitcoin has been stuck between $25,500 and $30,000. Even if the volume is at its recent low, the bulls are not allowing the price to drop much. Likewise, the bears do not pass above $30,000.
However, recent developments may further strengthen BTC's upward movements.
What's the Current Situation?
Currently, the most important support level in Bitcoin is $ 27,280. If BTC holds above this level, $28,700 will be the new target.
The most important level in case of loss is $ 27,200.
On the other hand, major altcoins like Ethereum recorded an average of 5 percent growth. ETH managed to climb above $ 1900 after this bullish wave.
Why Did Bitcoin Rise?
Rising prices follow news that a deal has been struck to resolve the US debt ceiling problem. The deal will delay the debt ceiling until January 1, 2025, according to Reuters. US President Joe Biden said the deal "takes the threat of catastrophic default off the table".
House Speaker Kevin McCarthy said in a statement that the White House and Republicans had reached an agreement in principle on a deal that would raise the debt ceiling for two years and limit spending, bringing the United States back from the brink of a historic default.
On the other hand, the fact that citizens will start legally trading cryptocurrencies after June 1 in Hong Kong is actually a very positive development. Although this development is not mentioned as loudly as it first appeared, it may signal the beginning of a mini bull in Bitcoin and altcoins.
The most important stage for Bitcoin in the current situation is the announcement of the FED interest rate decision on June 14. Looking at the expectations, a 25 basis point rate hike is expected with a 64% probability.
*Not investment advice.
