Bitcoin Bounces Off 2-Week Lows to Top $7,200 to Kick Off New Year

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The price of bitcoin on Friday bounced off 2-week lows to top the key level at $7,200 to recoup the losses incurred on Thursday. The bitcoin price has been trading in a sideways movement since late November amid short-term consolidation. 

Bitcoin appears to be lacking a definitive swing in market sentiment with both the bulls and the bears challenging to hold on to the $7,200 key level. The price of the pioneer cryptocurrency trimmed mid-year gains of more than 350% to close just under 100% high from the 2018 close.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the price of bitcoin is trading at the back of a relatively volatile year. However, in the last two months, the pioneer crypto appears to be lacking enough fundamental backing to significantly tilt the market balance in favor of the bulls or the bears. Nevertheless, based on the latest round of economic data and news about cryptocurrencies, things could change soon.

On Monday, the US Wholesale Inventories for December beat the expectation of a 0.3% change with 0.0%. Pending Home Sales for November also outperformed on both the (YoY) and (MoM) basis while the Chicago Purchasing Manager’s Index for December beat 48 with 48.9. However, the Dallas Fed Manufacturing Business Index missed the expectation of 1.5 with 3.2.

And on Thursday, the US initial jobless claims beat the expected claims of 225k with 222k while the continuing claims eclipsed the expected number of claims of 1.719M with 1.728M claims. Overall, data appears to be mixed, which is why there is no definite direction for the BTC/USD.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the BTC/USD appears to be trading within a consolidative sideways wedge amid a lack of clear market direction. Bitcoin has recently bounced off oversold levels and now appears closer to reaching overbought levels of the RSI indicator in the 60-min Chart. 

Therefore, the bulls will be targeting short-term profits at around $7,433 or higher at $7,688. On the other hand, the bears will be targeting pullback profits at around $7,000 or lower at $6,778.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin appears to trade in a consolidative bearish wedge well below the current levels of 100-day and the 200-day SMA lines. The bulls appear to be attempting a reversal but this could prove difficult given the current bearish pressure.

Therefore, the bears will be targeting long-term profits at around $6,658, $5,475 or lower at $4,959. On the other hand, the bulls will look to pounce for profits at around $7,836 or higher at $8,741.

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