Bitcoin Rallies Mildly Following $6 trillion US Government Spending Proposal

Bitcoin regained slight bullish traction earlier today and crossed the $40k mark following an announcement from the Biden administration on the US spending budget.

The President of the United States, Joe Biden, will submit a $6 trillion spending budget proposal later this week. Although Bitcoin rallied at the news, it failed to sustain the bullish momentum and fell back below the $39k mark.

The New York Times reported that this budget was part of President Biden’s two-part federal agenda to get spent in 2022. That said, this proposition could bring the total spending to $8.2 trillion.

Following the announcement, cryptocurrency analysts argued that BTC could store value against a steeping debt curve.

The government spending undertaking would require immense amounts of money-printing, further increasing the possibility of fiat hyperinflation and a bullish surge for the benchmark cryptocurrency.

Bitcoin currently trades around the upper-$38k level, after tumbling to multi-month lows over the past weeks on several negative news hitting the market.

Following the tax hike proposal, Biden noted that 2030 is when the government can decrease its spending deficits, putting the US in a heavy debt burden.

Key Bitcoin Levels to Watch — May 27

Following an 8% spike from today’s low to high, Bitcoin failed to capitalize on the uptick and has fallen back into the $39.5 – $36.5 pivot zone.

That said, we could see bears take reign over the coming hours as our MACD indicator flips to bearish. Nonetheless, this bearish bias could get negated if bulls manage to defend the 200 SMA support over the coming hours.

Meanwhile, our resistance levels are at $39,500, $40,000, and $41,000, and our key support levels are at $37,500, $36,000, and $35,000.

Total Market Capitalization: $1.69 trillion

Bitcoin Market Capitalization: $721.2 billion

Bitcoin Dominance: 42.5%

Market Rank: #1

 

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