Major cryptocurrencies were trading in the red on Monday evening as investors weighed the ongoing debt ceiling debate in the United States and concerns about liquidity in the global financial system.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin BTC/USD | -0.62% | $26,985 |
| Ethereum ETH/USD | -0.82% | $1,804 |
| Dogecoin DOGE/USD | -1.58% | $0.071 |
What Happened: Crypto markets were quiet on Monday evening, as prices for both Bitcoin and Ethereum were trading below their 20-day moving averages.
The 20-day moving average is a technical indicator that is used to identify the overall trend of an asset. When an asset is trading below its 20-day moving average, it is considered to be in a downtrend.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Lido DAO | +7.32% | $2.10 |
| Bit DAO | +4.14% | $0.50 |
| Pepe | +3.78% | $0.000001762 |
At the time of writing, the global crypto market capitalization stood at $1.13 trillion, a decrease of 0.63% over the last day.
U.S. stocks edged slightly higher on Monday as investors weighed the ongoing debt ceiling debate and corporate earnings. The S&P 500 added 0.3%, while the Nasdaq Composite rose 0.7%.
See More: Best Crypto Day Trading Strategies
Analyst Notes: “After falling to a two-month low, Bitcoin found support after tentatively falling below the $26,000 level. Upcoming debt ceiling talks will tell us a lot if investors believe Bitcoin can behave more of a safe-haven despite all the regulatory uncertainty," said Edward Moya, Senior Market Analyst At OANDA.
He added, "Bitcoin seems poised to stay in a range, but if risk aversion triggers a de-risking moment, we could see selling pressure extend below last week's low."
Crypto analyst Michaël van de Poppe is bullish on Bitcoin, as the cryptocurrency has broken upwards and tested $27,600.
Van de Poppe tweeted that Bitcoin is holding the 200-day moving average (MA) and exponential moving average (EMA) on the weekly timeframe, which are bullish indicators.
He believes that Bitcoin is likely to continue its upward momentum and reach $38,000-$42,000.
Popular crypto analyst CredibleCrypto is doubling down on his bullish stance on Bitcoin, despite the recent rejection from $30,000. Credible said that while liquidity gaps often get filled for many financial assets, it is not a guarantee that they will be filled.
The analyst believes that the liquidity gap at $20,000 is unlikely to be filled anytime soon, as it would require a significant amount of selling pressure.
"There's a gap at $20,000 that a lot have been eyeing up and using as justification for a deeper pullback form current levels. If I'm right about my thesis for new all-time highs in 2023 – that gap should go unfilled. If you were to ask me which comes first – $20,000 or $70,000+, I'd say $70,000+."
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
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