Bitcoin and other cryptocurrencies traded higher on Tuesday but continued to slide below key levels following a sharp correction in the digital asset’s price seen in April. The agreement to raise the US debt ceiling remains difficult and creates uncertainty for crypto traders.
The price of Bitcoin rose 2% to $27,325 in the last 24 hours. The biggest digital asset remains stuck in the zone between $26,500 and $27,500, which it has held for most of the past two weeks and represents one of the tightest trading ranges for Bitcoin.
Bitcoin
And other cryptocurrencies traded higher on Tuesday but continued to fall below key levels in the digital asset’s sharp correction seen in April. The agreement to raise the US debt ceiling remains difficult and creates uncertainty for crypto traders.
The price of Bitcoin rose 2% to $27,325 in the last 24 hours. The biggest digital asset remains stuck in the zone between $26,500 and $27,500, which it has held for most of the past two weeks and represents one of Bitcoin’s tightest trading ranges in years. While bitcoin is up about two-thirds this year, it has failed to hold above April’s high of $30,000 — the highest level since June 2022 — as traders see a number of triggers against a backdrop of brewing volatility.
“Bitcoin has stabilized above important support near $25,200 last week. But short-term momentum remains bearish,” said Katie Stockton, managing partner at technical research firm Fairlead Strategies. It remains. [indicators]He said.
Among the developing drivers that traders have been watching are the US macroeconomic picture, interest rate hikes and the risk of a default if the US debt ceiling is not raised. Both forces similarly affect the stock market and have seen Bitcoin trade at a level with.
Dow Jones Industrial Average
And
S&P 500
In particular, the prospect of a US debt default acts as a big brake on riskier assets.
Edward Moya, an analyst at brokers Oanda, said: “The risk of a wipe-out is very small, but if there is a feeling of risk appetite, it will reduce cryptos significantly.” “Bitcoin appears content to trade near its recent trading lows between $26,500 and $30,000…Crypto traders are unsure how Bitcoin will fare in the next several days of debt ceiling negotiations.”
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Beyond Bitcoin,
Ether
-The second largest crypto-gained 2% to $1,850. Small cryptos or altcoins were also high, with
Cardano
Less than 1% and
Polygon
Popping 3% Memecoins also rose, with
Dogecoin
And
Shiba Innu
Each will add 2%.
Write to Jack Denton at jack.denton@barrons.com
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