The bitcoin price on Friday bounced off the trendline support at $40,712 to advance towards the 100-hour moving average after plunging earlier in the day. The BTC/USD continues to trade within a highly volatile ascending channel formation in the 60-min chart.
However, despite Friday’s late rebound, the bitcoin price remains pinned below $43,000. In addition, the BTC/USD is still far from reaching overbought conditions of the 14-hour RSI, leaving more room for upward movement. Therefore, the current surge could continue through next week.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, the BTC/USD is trading at the back of a relatively busy period in the US market. On Friday, the US new home sales data came in better than expected (MoM), to restore some positivity after Thursday’s disappointing Markit PMIs and jobless claims numbers. Earlier in the week, the Federal Reserve decided to keep the base interest rate unchanged at 0.25%, despite increasing expectations on a Fed taper.
From a global perspective, the Chinese contagion continues to weigh on foreign markets, thereby resulting in increased risk-off trading. On the other hand, El Salvador’s decision to make bitcoin a legal tender is having a positive impact on the crypto market, with more investors now showing interest. As a result, the BTC/USD continues to trade under relative bullish bias.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, bitcoin seems to be trading within a gently ascending channel formation in the 60-min chart. This indicates a slight short-term bullish bias in the market sentiment. The BTC/USD also bounced off the oversold levels of the 14-hour RSI after plunging earlier on Friday.
Therefore, the bulls will be looking to extend the current rebound towards $43,977 or higher to $45,146. On the other hand, the bears will be targeting short-term profits at around $41,851, or lower at $40,712.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the bitcoin price seems to be trading within a descending channel formation, stemming from an ascending channel. This indicates a potential shift in the long-term market sentiment from bullish to bearish.
Therefore, the bears will be looking to ride the current downward trend by targeting profits at around $38,280 or lower at $33,207. On the other hand, the bulls will target long-term profits at around 447,712, or higher at $52,486.