By
Chimamanda U. Martha
April 24th, 2024
Bitcoin price managed to move over $9000 as United States Treasury Department aims to borrow a record-high $2.99 trillion in net marketable debt in the second fiscal quarter of 2020.
Bitcoin price finally recovered a bit from a pull-off that it has been through last week. At the time of writing the price was growing by over 3% to $9,016. The growth in Bitcoin price is partially attributed to the recent news from the U.S. government.
On May 5, Bitcoin price seems to recover a meaningful part of its losses from Sunday’s weekly close correction and data shows that within the last hour the digital asset crossed above the $9K mark again.
In spite of correcting to $8,500 on Sunday, Bitcoin price quickly overcame and found support in the $8,700-$8,850 range before spending the majority of Monday consolidating in this zone.
It is also interesting that this kind of cryptocurrency’s fast recovery to its previous trading range happened as modeling from the United States Center for Disease Control and Prevention expects that a rising rate of coronavirus cases will result in 134,000 deaths in the U.S. by June 1. This comes as the economy started to re-open and most of the states enforce plans that allow people to come back to work, all in a try for the economy to be brought back in life.
U.S. Treasury to Borrow $3 Trillion in Debt, Bitcoin Price Is Up
As Coinspeaker has already reported, the United States Treasury Department unveiled in a statement that it aims to borrow a record-high $2.99 trillion in net marketable debt in the second fiscal quarter of 2020. Meanwhile, the department said that it expects to borrow another $677 billion in the third quarter of the fiscal year. All of that is estimated to bring the total U.S debt closer to $25 trillion.
Also, it is necessary to mention the fact that the number of initial jobless claims amounted to 3,839,000 in the week ending April 24, a decrease of 603,000 from the previous week’s revised level. During the last two months, the U.S. recorded more than 30.3 million jobless claims.
Given the recent connection between traditional and crypto-markets, all of these facts could negatively impact crypto prices. However, right now, it seems that this is not the case with Bitcoin.
Move Over $8,970 Utterly Important
The hourly time frame also shows that the price had already abandoned three times at $8,950 and a move above $8,970 was of the most important for gains above $9,000.
The 4-hr chart also shows that the MACD is on the brink of concentrating with the signal line, and during the last eight hours, the RSI has shifted from 47 into bullish territory at 60.
On the hourly chart, traders can see that profit-taking is showing as demonstrated by the long upper wicks of the last two candles, along with the rise in selling volume, sloping RSI and CMF.
As the current 1-hour candle is on the brink of closing, traders should focus on volume to see if momentum abates and the price drops below $9,000 or whether Bitcoin price can push above the resistance zone from $9,140-$9,200.
As for now, the key area to break for an extension of the uptrend hovers around $9,500-$9,600.