After another bearish session, BTC will need a return to $27,000 to avoid a nine-day losing streak. US debt ceiling-related news will remain the key driver.

On Saturday, bitcoin (BTC) fell by 0.10%. Following a 0.73% loss on Friday, BTC ended the day at $26,790. Significantly, BTC extended its losing streak to eight sessions, the longest stretch of losses since June 2022.

After a mixed start to the day, BTC fell to a mid-morning low of $26,713. Steering clear of the First Major Support Level (S1) at $26,075, BTC rose to a late afternoon high of $27,071. However, falling short of the First Major Support level (S1) at $27,343, BTC eased back to sub-$27,000 and into the red.

US Debt Ceiling and Recessionary Jitters Leave BTC in Negative Territory

It was a quiet Saturday session, with no US economic indicators or crypto events to provide direction. However, US debt crisis-related news continued to drag, with the Democrats and Republicans failing to break the impasse.

On Saturday, US President Joe Biden said talks are progressing, and things will be more apparent in the next two days. While Biden’s comments will give BTC and the broader crypto market breathing room, investors would need optimistic updates to avoid another sell-off.

However, the losses were modest, with a brewing banking crisis cushioning the downside.

The Day Ahead

It is another quiet day ahead, with no US economic indicators to influence. The lack of economic indicators will leave US debt crisis-related news to draw investor interest.

US lawmakers and regulatory activity will remain focal points while policymakers resume talks in Washington. SEC v Ripple case updates and Binance and Coinbase (COIN)-related news will also need monitoring.

The news of Binance withdrawing from Canada is still doing the rounds, with Coinbase seeing more than usual newsreel.

We expect the NASDAQ mini to impact investor sentiment in the final hour. The US futures will give crypto investors a sense of calm or panic over the debt ceiling stalemate.

On Friday, the NASDAQ Composite Index fell by a modest 0.35% versus BTC’s 0.73% loss.

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Bitcoin (BTC) Price Action

This morning, BTC was up 0.08% at $26,811. A range-bound start to the day saw BTC fall to an early low of $26,738 before rising to a high of $26,816.

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Technical Indicators

Resistance & Support Levels

BTC needs to move through the $26,858 pivot to target the First Major Resistance Level (R1) at $27,003 and the Saturday high of $27,071. A return to $27,000 would signal an extended bullish session. The crypto news wires and US debt ceiling talks should be crypto-friendly to support an extended rally.

In the event of an extended rally, BTC would likely test the Second Major Resistance Level (R2) at $27,216 and resistance at $27,500. The Third Major Resistance Level (R3) sits at $27,574.

Failure to move through the pivot would leave the First Major Support Level (S1) at $26,645 in play. However, barring a crypto event-fueled sell-off, BTC should avoid sub-$26,500. The Second Major Support Level (S2) at $26,500 should limit the downside. The Third Major Support Level (S3) sits at $26,142.

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Looking at the EMAs and the 4-hourly candlestick chart (below), it was bearish signals. BTC sat below the 50-day EMA ($27,518). The 50-day EMA slid back from the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA, sending bearish signals.

A move through R1 ($27,003) would give the bulls a run at R2 ($27,216) and the 50-day EMA ($27,518). However, failure to move through the 50-day EMA would leave S1 ($26,645) in view.

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