The bitcoin price on Wednesday bounced off the current weekly lows of about $37,564 to trade closer to $40,000 after an extended rally. The BTC/USD made a bullish breakout from a descending channel formation earlier in the day.
Bitcoin is now pinned to the 100-hour moving average in the 60-min chart. The price of the pioneer cryptocurrency has also rallied to the overbought levels of the 14-hour RSI. This could trigger a short-term pullback.
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 Wednesday, the greenback received a major boost after the US ISM Services PMI for July beat the expectation of 60.4 with 64.1. However, it did not affect the bitcoin price for long, with the BTC recovering later to extend session gains. Investors seem to have taken more consideration for the ADP Employment change data, which missed the expectation of 685k with a job count of 330k.
Earlier in the week, the ISM Manufacturing PMI for July missed the expectation of 60.9 with 59.5 while the construction spending for June came short of 0.4% with a change of 0.1% (MoM). On the other hand, Factory orders for June beat the expected (MoM) change of 1% with a change of 1.5%. Bitcoin continues to gain amid increased interest from mainstream multinational corporations, with Amazon becoming the latest company to embrace crypto.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the BTC/USD appears to have recently bounced back to rally to the 100-hour moving average in the 60-min chart. This indicates a significant shift in the market sentiment from bearish to bullish. The bitcoin price had fallen significantly since the beginning of the month.
The bulls will be targeting extended gains at approximately $40,987 or higher at $42,223. On the other hand, the bears will target potential pullback profits at about $38,781 or lower at $35,564.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the BTC/USD appears to have recently pulled back from a significant recovery trend formation. It is now trading between 23.60% and 38.20% fib levels. The pullback pushed the bitcoin price back to the normal trading zone off overbought conditions.
The bears will target extended pullback profits at approximately $34,084 or lower at $28,721. On the other hand, the bulls will target rebound at approximately $45,401 or higher at the 61.80% fib level at $51,074.