Bitcoin Bulls Fail To Stretch Weekly Gains Above $7,600

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Bitcoin bulls on Friday failed to extend the price of the pioneer cryptocurrency above the $7,600 key level amid three successive gains through Thursday. The price o bitcoin pulled back on Friday to trade at around $7,508 as the bulls moved to take some profits.

From an extended view, the price of bitcoin is now trading within a slightly rising channel. It remains several levels above the 100-hour and the 200-hour SMA lines in the 60-min chart. The 14-hour RSI has pulled back off overbought levels to oscillate within the normal trading zone.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the price of bitcoin has suffered from the adverse effects of the coronavirus pandemic. However, just like the rest of the markets, that impact is now fully priced in and any positivity from simmering through the cracks of the global financial markets is bound to generate some upward momentum. This is exactly what has happened in the last few days. 

According to data collected last week, asset managers investing in cryptocurrencies are still inclined to the bear side of the market. Last week, total additions to their books showed 316 short positions versus 218 long positions added. Leveraged funds also appear to be following in the footsteps of asset managers albeit mildly. Last week they added 172 short positions versus 134 long positions. 

Given this week’s surge in the price of bitcoin, we could see a very different picture once the date for the week is out next week.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin appears to be experiencing a short-term bullish bias in the market sentiment. Bitcoin has now resumed trading within the gently ascending channel in the 60-min chart.

Bitcoin bulls will be targeting short-term profits at around $7,600 or higher at $7,705. On the other hand, the bears will be looking to follow in the footsteps of asset managers and leveraged funds by targeting profits at $7,405 or lower at 47,285.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin appears to have recently made a bullish breakout off a descending channel. This indicates an attempt by the bulls to establish long-term control of the BTC/USD.

They will be targeting long-term profits at around 61.80% and 76.40% Fib levels at $7,970 and $8,903, respectively. On the other hand, the bears will target profits at around 38.20% and 23.60% Fib levels at $7,176 and $6,379, respectively.

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