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House Speaker gives Trump administration 48 hours to reconcile names on COVID-19 stimulus legislation, will its results affect Bitcoin price?

Bitcoin price has been stuck within a macro consolidation phase for the past several months. This consolidation has led to the formation of a trading range between $10,000 and $12,400, with bulls and bears being unable to break above or below either of these levels.

Although $20,000 is often looked upon as a level of macro importance, one trader is stating that this level only has importance from a psychological level. He contends that the mid-to-upper $11,000 region is the level that is truly critical for Bitcoin’s macro outlook.

Bitcoin and the aggregated crypto market have been caught in the throes of one of the most intense macro consolidation phases it has seen in quite some time. BTC has been trading between lows of $10,000 and highs of $12,400, with it now consolidating squarely between these two levels. The price region just above where it is currently trading at may continue acting as strong resistance, as one analyst is noting that it is a crucial region – arguably even more important than $20,000.

Bitcoin price consolidates in the mid-$11.000 regions as bulls and bears reach an impasse

At press time, Bitcoin is trading up just under 1% at its current price of $11,464. This is around the price at which it has been trading throughout the past few days. Bears did attempt to spark a sharp selloff a few days ago, but bulls rapidly absorbed this selling pressure.

The entire market trends next will likely depend largely on Bitcoin and whether it can break above its $11,600 resistance. A continued bout of trading below this level could lead to a serious downside in the mid-term.

Crypto analyst Cantering Clark explained in a recent tweet that Bitcoin is currently trading is arguably more important for its macro trend than $20,000, noting that its all-time high was simply a blowoff top that has some psychological significance.

He stated:

“The ATH was a blowoff top, so now it’s more of a psychological level than anything else. Right here is what matters based on how the price has been distributed over time.”

will-its-results-affect-bitcoin-price

Until Bitcoin breaks $11,600 and begins a fresh leg higher, its near-term outlook remains somewhat unknown.

House Speaker called on Trump administration to reconcile remaining disputes on COVID-19 within 48 hours

In an interview on ABC News, House of Representatives Speaker Nancy Pelosi set a 48-hour deadline for the Trump administration to mediate the remaining disputes over the COVID-19 stimulus law to give lawmakers enough time. Adoption of the bill before the 2020 election on November 3.

will-its-results-affect-bitcoin-price

U.S. House Speaker Nancy Pelosi

Pelosi said she is optimistic about the talks but ultimately depends on the White House:

“The 48 only relates to if we want to get it done before the election, which we do. We’re saying to them, we have to freeze the design on some of these things – are we going with it or not and what is the language? I’m optimistic because again we’ve been back and forth on all this. ”

Negotiations over stimuli have dragged on for months even as the coronavirus spread across the United States and millions of Americans remain unemployed. Democrats, who passed the $ 2.2 trillion bailout bill in the House of Representatives, have rejected the Trump administration’s latest $ 1.8 trillion proposals as insufficient. The two sides also disagreed on other major policy issues including funding for state and local governments and protecting liability for businesses during a pandemic.

Even if Pelosi and Mnuchin were able to reach a bipartisan deal, many Senate Republicans were opposed to spending almost $ 2 trillion on a package.

If the deal fails, there is a high chance that the Trump administration will be unsettled and at this point, discussions within the government will become more and more intense. And as always, upheaval in American politics leads to greater volatility in the stock market. Usually, the cryptocurrency market is equally affected.

You can see the Bitcoin price here.

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