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Potential Rally on the Cards for Bitcoin (BTC), Predicts Firm

source-logo  coinedition.com 02 June 2023 11:02, UTC

The blockchain intelligence firm Santiment predicted in a tweet this morning that Bitcoin (BTC) may rally soon. This optimistic outlook comes after the U.S. House passed a crucial debt ceiling deal, which subsequently resulted in the S&P500 as well as several altcoins spiking in the past 24 hours.

According to the post, the S&P 500 soared to its highest price since August of last year. In addition, altcoins such as Litecoin (LTC), UNUS SED LEO (LEO) and FantasyGold (FGC) also saw their prices jump recently. The increases in these altcoins’ prices led Santiment to believe that BTC’s price will soon follow suit.

At press time, the market leader’s price was trading at $27,104.41 following a 0.93% gain over the past 24 hours, according to CoinMarketCap. This positive price movement added to the crypto’s already-positive weekly performance – taking BTC’s total weekly gain to 2.49%. However, altcoins had outperformed BTC slightly, as its dominance was down 0.10%.

Daily chart for BTC/USDT (Source: TradingView)

From a technical perspective, the daily RSI indicator on BTC’s chart supports Santiment’s bullish outlook, with the RSI line trading above the RSI SMA line at press time. In the past 48 hours, it had attempted to cross bearishly below the SMA line, but had rebounded.

Furthermore, the RSI line was positively sloped towards overbought territory – signaling bulls’ growing strength. The RSI line was also at 47.67, which meant that there was a lot of room for a bullish move before BTC would find itself in overbought territory.

Traders and investors may want to wait for BTC’s price to close above the 9-day and 20-day EMA lines before going long on the crypto. Should this happen, BTC’s price could climb to the next resistance level at $27,650 in the following 48 hours. On the other hand, a daily close below $26,515 would put BTC at risk of dropping to $25,800.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.