BTC found early support this morning. However, Fed chatter and US economic indicators will influence as investors eye updates on the SEC v Ripple case.

On Sunday, bitcoin rose by 0.55%. Reversing a 0.10% loss from Saturday, BTC ended the week down 5.43% to $26,937. Significantly, BTC ended an eight-day losing streak, the longest stretch of losses since June 2022.

A bearish start to the day led BTC to a first-hour low of $26,603. Finding support at the First Major Support Level (S1) at $26,645, BTC rose to a mid-afternoon high of $27,205. BTC broke through the First Major Support level (S1) at $27,003 to test the Second Major Resistance Level (R2) at $27,216 before easing back to end the day at $26,937.

US Debt Ceiling Jitters Subside Ahead of a Busy Week

It was a quiet Sunday session. There were no US economic indicators to influence, leaving BTC in the hands of US debt ceiling-related news and the crypto news wires.

Over the weekend, US President Joe Biden provided some comfort, reportedly saying both sides are interested in reaching an agreement. The fallout from a US government default on payments would weigh on riskier assets.

President Biden will meet policymakers on Tuesday to progress talks, leaving BTC in limbo.

The Day Ahead

Chatter from Capitol Hill and regulatory activity will remain focal points. However, SEC v Ripple case updates and Binance and Coinbase (COIN)-related news will also need monitoring. Court rulings from the SEC v Ripple case would materially influence BTC price action.

Beyond the crypto market, the US economic calendar will also provide direction.

NY Empire State Manufacturing Index numbers for May will be in focus this afternoon. Economists forecast a fall from 10.8 to -2.5. An Index return to negative territory would fuel recessionary jitters and weigh on BTC and the broader crypto market.

However, while the stats will draw interest, investors should monitor FOMC member speeches. FOMC members Kashkari, Bostic, and Barkin will speak today. Hawkish chatter would be bearish as investors search for clues on what is next from the Fed.

According to the CME FedWatch Tool, there was a 14.4% chance of a 25-basis point interest rate hike in June, down from 15.5% on Friday.

The US banking sector and the US debt ceiling will also need monitoring.

Bitcoin (BTC) Price Action

This morning, BTC was up 0.04% to $26,948. A range-bound start to the day saw BTC rise from an opening price of $26,939 to a high of $26,951.

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