empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
27.04.2023 12:14 PM
Bitcoin recovered above $29k as U.S. debt limit rises
Open trading account Open demo account

Over the past two days, Bitcoin has managed to break the corrective movement near the $27k level. The first factor that contributed to strengthening the bulls' positions was the collapse of the American bank FRC's shares. This once again confirmed the vulnerability of the banking system, and BTC received an upward impulse.

The second factor that allowed BTC to recover above $29k was the high level of volatility on April 26th. Sharp changes in price movement direction and attempts to scare both buyers and sellers led to BTC recovering above $29k.

U.S. debt ceiling – the volatility sponsor

Yesterday, April 26th, the U.S. House of Representatives discussed the issue of raising the debt ceiling. Recall that JPMorgan stated that the U.S. debt ceiling could become a problem for the economy as early as May 2023. Therefore, the meeting provoked a sharp increase in volatility in financial markets.

This image is no longer relevant

The situation was fueled by the likely sale of BTC coins held by the U.S. government. During the discussion on raising the debt ceiling, Arkham Alert reported that wallets associated with MtGox and the U.S. government were conducting BTC transactions.

This image is no longer relevant

As a result, the on-chain aggregator acknowledged the complete passivity of BTC wallets related to the U.S. government and admitted its mistake. The U.S. debt ceiling was raised to $1.5 trillion, which ultimately reassured investors and allowed BTC to continue growing.

This image is no longer relevant

Meanwhile, it was reported that the money supply in March had again sharply begun to decline, setting a record for the past 90 years. It can be noted that this process led to the collapse of FRC bank shares and a slowdown in Bitcoin's bullish movement.

BTC/USD Analysis

Bitcoin has become one of the main instruments used as a highly volatile asset during yesterday's turmoil in financial markets. The asset managed to retest the $27.2k level within a day and subsequently grew to $30k.

This image is no longer relevant

As of 08:00 UTC on April 27th, the volume of liquidated positions in the crypto market amounted to $255 million. Both short and long positions were affected, and BTC price action was heavily manipulated to create intraday bull/bear trap patterns.

This image is no longer relevant

As a result, the asset ended the volatile day with the formation of an uncertain Doji candlestick. Despite this, BTC closed positively above the $28k level, which allowed the asset to resume its upward movement and recover above $29k and retest the $29.5k level.

As of 08:00, Bitcoin looks bullish due to the positive resolution of the situation with the increase in the U.S. national debt limit. The technical metrics of the asset are making a smooth reversal from the bottom of the bullish area. The Stochastic made a powerful bullish crossover, and the RSI crossed the 50 level.

This image is no longer relevant

At the same time, the MACD is moving above the red zone, which is a positive signal, as the metric is increasingly turning in the flat direction. Given the technical signals, BTC will continue its upward movement and try to make a bullish breakout of the $29.5k level.

This image is no longer relevant

Returning to the 90-year record decline in the money supply and turmoil in the banking system, investors are increasingly considering BTC as a store of value. The cryptocurrency's correlation with gold has reached its highest level in the last two years.

Results

Bitcoin emerged victorious from yesterday's volatility spike and recovered above $29k. The next target for the cryptocurrency is the $29.5k level, where the local resistance zone is located. Fundamentally, the asset is becoming increasingly attractive due to the crisis in the traditional banking system and the early stage of the cryptocurrency's bull market.

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Analytical News
US Market News Digest for May 29 Markets reacted to a US Court of International Trade ruling that found the Trump administration's tariff actions exceeded its authority. The decision has introduced fresh uncertainty for the S&P
Ekaterina Kiseleva
11:15 2025-05-29 +02:00
1165
Technical analysis
Forecast for EUR/USD on May 29, 2025 On Wednesday, the EUR/USD pair continued to decline and consolidated below the support zone at 1.1260–1.1282. Therefore, today's price drop may continue toward the next Fibonacci retracement level of 23.6%
Samir Klishi
11:15 2025-05-29 +02:00
1045
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trading Recommendations for the Cryptocurrency Market on May 29

Bitcoin is starting a correction, and Ethereum is showing signs of strength. Yesterday, Bitcoin dipped to around $107,000 before rebounding sharply — a sign that many traders are cautious about
Miroslaw Bawulski 08:56 2025-05-29 UTC+2

Bitcoin Emerges from Wall Street's Shadow: Why the Coming Months Could Be Pivotal for the Crypto Market

The announcement that Cantor Fitzgerald, one of the largest U.S. primary dealers, is launching Bitcoin-backed lending has reshaped the crypto market. Managing $2 billion in capital for this venture
Ekaterina Kiseleva 00:31 2025-05-29 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 28

Bitcoin failed to hold above the $110,000 level, while Ethereum again showed decent growth, fueled by news of a possible significant increase in the gas limit per block
Miroslaw Bawulski 10:04 2025-05-28 UTC+2

Bitcoin Remains Within a Range Conducive to Growth

Yesterday, Bitcoin and Ethereum continued to attract demand from traders and investors, maintaining strong prospects for the continuation of the bullish market. Meanwhile, the International Monetary Fund (IMF) stated that
Jakub Novak 09:36 2025-05-28 UTC+2

Technical Analysis of Intraday Price Movement of Bitcoin Cryptocurrency Pairs, Wednesday May 21, 2025.

On the 4-hour chart of the Bitcoin cryptocurrency, there appears to be a Divergence between the Bitcoin price movement and the Stochastic Oscillator indicator, which indicates that in the near
Arief Makmur 08:39 2025-05-28 UTC+2

Bitcoin: A Bet on $300,000 or a Painful Correction? What's Next for the Market

Bitcoin reached $110,000 but failed to sustain the rally throughout the day, continuing its consolidation. Yet this lull is by no means a sign of exhaustion. Behind the scenes, activity
Ekaterina Kiseleva 00:44 2025-05-28 UTC+2

Bitcoin and Ethereum maintain bullish momentum

Despite a short pause, Bitcoin and Ethereum don't appear to be finished with their upward moves. While Bitcoin slightly pulled back during today's Asian trading session, Ethereum has already broken
Jakub Novak 11:03 2025-05-27 UTC+2

BTC/USD Analysis on May 27, 2025

The wave pattern on the 4-hour BTC/USD chart has become more complex. A corrective downward structure completed its formation around the $75,000 level. After that, a fairly strong upward move
Chin Zhao 10:53 2025-05-27 UTC+2

Trading Recommendations for the Cryptocurrency Market on May 27

Demand for bitcoin and ether has continued early this week. Bitcoin remains above the $109,000 mark, while Ethereum is trying to consolidate above $2,600. Yesterday's news that Strategy once again
Miroslaw Bawulski 08:53 2025-05-27 UTC+2

Bitcoin Holds Above $107,000

Bitcoin has resumed its upward movement and already surpassed the $109,900 level after a solid correction to the $106,000 level over the past weekend. The fact that price held above
Jakub Novak 11:35 2025-05-26 UTC+2

Top analytics

Relevance up to 22:00 2025-05-29 UTC--4
EUR/USD Forecast for May 29, 2025
05:01 2025-05-29
Technical analysis
Relevance up to 20:00 2025-05-29 UTC--4
Trading Recommendations and Analysis for EUR/USD on May 29: The Dollar Breaks All Records
03:32 2025-05-29
Trading plan
Relevance up to 20:00 2025-05-29 UTC--4
EUR/USD Overview – May 29: Laughable or Lamentable? Trump Promises a Deal Again
03:32 2025-05-29
Fundamental analysis
Relevance up to 02:00 2025-05-30 UTC--4
USD/JPY: Simple Trading Tips for Beginner Traders on May 29. Review of Yesterday's Forex Trades
08:43 2025-05-29
Forecast
Relevance up to 20:00 2025-05-29 UTC--4
Trading Recommendations and Analysis for GBP/USD on May 29: The British Pound on the Edge
03:32 2025-05-29
Trading plan
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.