The price of bitcoin (BTC/USD) spiked on Friday to retest the current monthly highs of about $8,820 after plunging to bottom at around $7,296 in mid-week.  The price of the pioneer cryptocurrency rallied at the back of positive CFTC traders report that showed the bulls’ dominance among asset managers. 

Bitcoin price has been constrained within $7,820 and $8,820 over the last 30 days with the exception coming in this week when it dropped to $7,296. These support and resistance levels could continue to hold after the BTC/USD returned to trade within the range on Friday.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the price of bitcoin spiked late on Friday after data released by the CFTC showed that in the futures market, bitcoin bulls dominated transactions among asset managers. 

In the CFTC trader’s commitment report, asset managers cut 47 long positions while 118 short positions got chopped. On the other hand, leveraged funds trimmed 236 long positions versus 317 short positions that were cut. Therefore, based on Friday’s activity, it looks like the bulls are winning the battle, which explains the BTC/USD’s rally late on.

This comes at a time when cryptocurrency prices have been under intense pressure recently following Libra’s woes that saw major fintech companies withdraw their support of one of the most hyped cryptocurrencies yet to hit the market.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin appears to be trading in a sideways movement within a restrictive channel. Both the support and resistance levels have held strong over the last four weeks, bar this week’s breach down below.

Therefore, the bulls will be targeting short-term profits at around $8,820 or higher at $8,995 should a breach up top occur while the bears will look to pounce on profits at around $8,405 or lower at $8,195. 

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin appears to be trading under strong bearish pressure within a diving wedge. This bearish movement dates back to the beginning of July when the 3-month rally ended. The BTC/USD is currently pegged just below the 200-day SMA, which indicates a strong bearish pressure.

Therefore, the bears will be targeting long-term profits at around $7,520, $6,666 or lower at $5,633 while the bulls will hope for a continuation of the current rebound towards $9,306 or higher at $10,825.

In summary, the price of bitcoin appears to be trading under intense long-term bearish pressure but in the short-term, the bulls are attempting to take control.