Bitcoins weekly situation update showed positive signs, with the price surpassing the $28,000 threshold after the agreement to raise the debt ceiling was announced and voted on.
After seeing the positive news from the US debt ceiling lifting and, like the market comments from the previous article, BTC recovered when it reached the support area at $25,800 and retested the $27,000 and $28,200 areas.
Currently, in the H4 time frame, the price is close to the strong resistance area combined with the indicators that are located in the overbought area. BTC may correct slightly here. However, on the weekly time frames, the price has appeared strong reversal confirmation candles and is likely to retest the $30,000 – $31,000 area.
BTC price in the weekly frame. Source: TradingView
On May 28, according to local time, US President Biden said in a speech that he had reached a final agreement with House Speaker McCarthy on raising the debt ceiling and called on Congress to approve the agreement as soon as possible.
Biden said that reaching a debt ceiling agreement was an important step forward: “This agreement averted the worst of the crisis” and “eliminated the risk of catastrophic default.” He strongly urged the House of Representatives and the Senate to pass the agreement.
The proposed deal has now been published on the House of Commons website. It projects that non-defense government spending will stay the same for two years and then increase by 1% by 2025.
There will be no major changes to Medicaid health coverage, and the proposed deal fully funds medical care for veterans.
Energy licensing legislation would be streamlined to speed approval times for new projects – a reform Republicans are pushing. Unused Covid relief funds will be withdrawn in the deal, another Republican request.
President Joe Biden (left) with Republican House Speaker Kevin McCarthy
Several age changes are proposed for a government program that provides food assistance to people with low or no income.
McCarthy said Sunday that more than 95% of Republicans in the House are excited about the deal. A US default would boost the US economy and disrupt global markets.