Bitcoin (BTC) staged a classic range comeback on May 23 as markets “bought” hopes that the United States had resolved the debt ceiling debacle.
$30,000 back on the cards
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it headed toward $27,500 on Bitstamp overnight.
Still stuck in a familiar trading corridor, the pair nonetheless showed signs of life as news hit that the Biden administration had potentially resolved the debt crisis.
This turned out to be premature, but Bitcoin stayed higher on the day, as market participants hoped that bulls could follow through.
Popular trader Skew eyed various trend lines, including hourly and daily exponential moving averages (EMAs), for cues as to short-term moves.
“Successful bounce from weekly open reclaim into the bounds of 4H EMAs & 1D EMAs,” part of a Twitter update stated.
“Looking forward would expect real positioning to shift & show up today. Hold both EMA trends = resolution towards $30K + Failure = price pulls back towards 200W MA again.”
Investigating the Binance BTC/USD order book, monitoring resource Material Indicators suggested that markets had “bought the rumor” when it came to debt ceiling news.
#FireCharts show that moment the market bought the rumor that @POTUS and @SpeakerMcCarthy are going to reach a deal on the #DebtCeiling #BTC pic.twitter.com/dulYZI4HTI
— Material Indicators (@MI_Algos) May 23, 2023
A subsequent tweet revealed that two of its proprietary trading tools had converged to deliver long signals.
“Confluence between the algos has historically been a very strong signal with a high probability of validating at the candle close,” part of an accompanying commentary added.
Muted response to Hong Kong crypto greenlight
A cooler reaction, meanwhile, came as Hong Kong announced the return of retail crypto trading.
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Exchanges would be able to apply for a license as soon as June 1, local regulator, the Hong Kong Securities and Futures Commission (SFC), confirmed.
“Providing clear regulatory expectations is the key to fostering responsible development,” SFC CEO Julia Leung commented in a press release.
“Hong Kong’s comprehensive virtual assets regulatory framework follows the principle of ‘same business, same risks, same rules’ and aims to provide robust investor protection and manage key risks. This will enable the industry to develop sustainably and support innovation.”
While Cointelegraph noted that the move did not mean that Hong Kong would offer a “carte blanche” environment for crypto trading, cautious optimism from within the industry was palpable.
Hong Kong opening up the gates.
Let’s see how other markets respond. https://t.co/4gGRT2A8sG
— Philip Swift (@PositiveCrypto) May 23, 2023
“Many may not know it, but Hong Kong is one of the top 10 wealthiest cities in the world. I think we’ll see a lot of green candles this summer,” popular trader Moustache added on the day.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.