Bitcoin (BTC) is showing a very promising outlook today with its price recording a 1.01% growth to $27,159.74. At current level, its price is now above the key support level at $27,000. The bullish momentum has also seen the biggest digital currency pare off the losses it has accrued over the past week with the growth within this time ticking up 0.46%.
Commenting on the current Bitcoin price strides, popular on-chain analyst Rekt Capital said the top cryptocurrency may be forming an “exaggerated” bullish divergence on the daily RSI.
He believes that despite the enthusiasm for growth, investors will be better off to understand that the key resistance for Bitcoin to breach is pegged at $27,600. With Bitcoin price notably below this highlighted resistance point, the assumption that the crypto has broken free from its major instability appears to be a fallacy in this instance.
Bitcoin remains the major marker for other altcoins and with the sheer skepticism lent into the price outlook of the asset, we cannot categorically state that other altcoins are also on their path to recording major price runs.
Bitcoin Recovery: The US Economy Factor
There have been a lot of factors weighing down the growth push of Bitcoin over the past few weeks and one of the latest is the impact of the possible debt default by the US Government. The general uncertainty in the negotiations as key leaders involved in the discussions have been playing the blame game has pushed some investors to steer clear of risk assets like Bitcoin.
President Joe Biden has emphasized that a successful debt deal is one that will in no way protect crypto traders, which imply that there may be a yet-to-be-revealed downside for investors in the nascent industry. This is considered a red flag that has the potential of also keeping some investors away from the injecting capital into the industry.
Crypto traders need to get clarity to most of these uncertainties in order to plan their investments for the long term. In the meantime, BTC price may be hovering around the major support at $25,000 and the resistance level around the $27,600 identified by Rekt Capital.