The price of bitcoin on Tuesday bounced off the $57,070 level to trade at around $59,323 before pulling back late on to settle at $58,683. The price of the pioneer cryptocurrency has been on a bull-run since late last week and this seems set to continue through Friday.
The BTC/USD has now rallied to trade several levels above the 100-hour and the 200-hour SMA lines in the 60-min chart. On Tuesday, it rallied to trade in the overbought levels of the 14-hour RSI. It later pulled back to return to the normal trading zone of the indicator.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, the price of bitcoin is being driven by the unending uncertainty about the extent of the impact of covid-19. Global economies are devastated as they continue to be hit by the new strain of the virus. Some have gone back to lockdown thereby adding uncertainty to capital markets. Bitcoin has recently gained plaudits of being a potential safe-haven asset, especially within the young generation of investors. Therefore, the lockdowns may be inadvertently boosting investments in cryptocurrencies led by bitcoin.
The US has already announced a new round of stimulus package to try to boost the economy. This affects the strength of the USD because of the additional money in circulation. From an economic standpoint, there hasn’t been much to read into this week. But the S&P/Case-Shiller Home Price Indices impressed after outshining 11% with a (YoY) change of 11.1% for January. Traders will look forward to Wednesday’Biden speech as well as the employment change for March.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the price of bitcoin appears to be trading within sharply ascending channel formation in the 60-min chart. This indicates a strong short-term bullish bias in the market sentiment.
The bulls will be targeting short-term profits at around $59,323 or higher at $60,170. On the other hand, the bears will look to pounce on potential pullbacks at around $57,873 or lower at $57,071.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the price of bitcoin appears to have recently bounced back after a strong pullback. This indicates an attempt by the bulls to retake control of the BTC/USD in the long-term.
They will look to pounce on long-term profits at around $62,000 or higher at $66,739. On the other hand, the bears will look to pounce on long-term pullbacks at around $55,202 or lower at $50,738.