At the moment, experts are expecting a short-term correction to initiate a BTC bear market near or below the $26,000 levels seen on May 26.
After small gains seen at the onset of May 29, Bitcoin went past $28,400 to record the highest for the day. However, BTC/USD is back to trading below the psychological resistance at $28,000 as of May 30. A short-term BTC bear market may be in sight.
Compared to its recent dip below $26,000 on May 25, Bitcoin had gone up by 10% as of May 29. This turn of events may be in part influenced by the current economic environment in the US- as the Biden administration and the House Speaker Kevin McCarthy have stated, there has been an agreement to hike up the borrowing limits for the country.
It’s to be noted that this comes immediately after the Treasury Secretary Janet Yellen’s warning in the past week; she pointed out that not raising said limit could result in a severe lack of cash for the US government by as soon as June 1.
At the moment, Bitcoin may be poised for a short term downturn toward the $25,000 support levels. As of May 30, 2023, Bitcoin is trading around $27,800, down by about 0.5% in the past 24 hours. Once the market settles down, Bitcoin is slated to breach the $28,000 resistance for good and aim for over the $30,000 price mark in June.
BTC/USD 7 day price chart
Meanwhile, the $26,000 around levels last seen on May 25 continue to act as a solid support for now if a BTC bear market does follow. In case those levels give way due to the short-term correction, the $25,700 around levels may come into play as the next support.