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In a bid to avert a potential debt default, the White House and House Republicans have tentatively agreed on a deal, as of May 27. This has sparked a rally in the U.S. equities markets and stimulated a recovery in the cryptocurrency sector, buoyed by the anticipated agreement.



Consequently, Bitcoin went from $26,300 to $28,100 in the last four days. It faced stiff overhead resistance at $28,200 which is also where the 50 DMA lies.

If the price turns down from here, we could see the bears pull BTC down to $25,000. The Bulls could come in to defend that zone because a drop below it could trigger massive selling.

However, if the bulls manage to push the BTC price above the 50 DMA, it would indicate strong buying on dips and could trigger a push to $31,000.
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