Bitcoin Bounces Off 6-Week Lows to Trim Weekly Losses

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The bitcoin price on Friday bounced off $55,889 to trade closer to $58,000 after setting a new 6-week low. The pioneer cryptocurrency has been on a downward movement since setting a new all-time high of about $68,521 on November 5.

Bitcoin fell to trade below the 100-hour moving average at the start of the week, but Friday’s rebound pushed it closer to touching distance. The BTC/USD is yet to reach overbought conditions after the rebound.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the BTC/USD is trading at the back of a crucial period in the cryptocurrency market. The pioneer cryptocurrency seems to be suffering from a significant rise in profit-taking following the recent surge. In addition, the cryptocurrency industry as a whole is experiencing pressure from increased government crackdowns in both the US and China.

The BTC/USD also plummeted this week amid positive US economic data, which boosted the greenback. On Tuesday, the US retail sales control group for October outperformed the expectation of 0.9% with a change of 1.6%. On the other hand, monthly retail sales beat the expectation of 1.4% (MoM) with 1.7% while retail sales ex-autos outshone 1% with 1.7%.  Elsewhere, import and export prices for October exceeded expectations on both (YoY) and (MoM) basis while industrial production and capacity utilization also came in above estimates.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the bitcoin price seems to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to ride the current rebound towards $58,878, or higher to $59,962. On the other hand, the bears will be targeting potential pullback profits at about $56,843, or lower at $55,889.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the bitcoin price seems to be trading within a sharply descending channel formation, thus indicating a significant long-term bearish bias. As a result, the BTC/USD has plunged to trade closer to the oversold conditions of the 14-day RSI.

Therefore, the bulls will be targeting potential rebounds at about $61,173, or higher at $65,234. On the other hand, the bears will be looking to extend the current declines towards $54,071 or lower to $50,003.

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