Bitcoin Bulls Look to Bounce Back After Succumbing to Bearish Pressure

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The price of bitcoin BTC/USD on Thursday bounced off new 10-day lows of about $9,000 to top $9,113 after succumbing to intense bearish pressure during the week. Bitcoin has been trading within a consolidative bearish wedge since the start of the week. The $9,000 key level provides strong support as it played a crucial role in Thursday’s rebound.

Bitcoin also appears to be facing strong resistance whenever the bulls try to push it towards $9,500. Thursday’s rebound also pushed it off oversold levels of the 14-hour RSI. However, it still remains below the 100-hour and the 200-hour SMA lines in the 60-min chart.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the price of bitcoin is tipped by several crypto enthusiasts to outshine the 2017 rally this year. This has given the pioneer crypto investors some optimism to invest. Bitcoin is now seen as one of the unfamiliar safe-haven investment options. Its scarcity and finite nature make it ideal for storing value especially now the global financial markets are facing a crisis. The BTC/USD has also been boosted by the weakening of the counter fiat currency the greenback amid mixed economic data.

On Tuesday, the US CPI ex-food and energy beat the (MoM) expectation of 0.1% with 0.2%. It also outshone on a (YoY) basis with 1.2% versus 1.1%. On the other hand, the general CPI for June came in at 0.6% versus an expected change of 0.5% (MoM). The (YoY) equivalent was in line with expectations at 0.6%. Industrial production for June beat 4.3% with 5.4% (MoM). On Thursday, the retail sales control group for June beat 3.6% with a change of 5.6% (MoM) while general retail sales outperformed the (Mom) expectation of 5% with 7.5%. The initial jobless claims missed 1.25M with 1.3M claims.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of the pioneer cryptocurrency appears to be trading within a tight wedge in the 60-min chart. The descending top coupled with a flat base indicates a slight bearish bias.

The bulls will be looking to extend the current rebound towards $9,248 or higher at $9,378. On the other hand, the bears will look to pounce on pullback profits at around $9,000 or lower at $8,891.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the BTC/USD appears to have suffered upward exhaustion on its recovery the massive plunge experienced at the start of the year. Bitcoin is now pegged just above the 100-day SMA while the 200-day SMA is a few levels below.

The bulls will be looking to extend the current recovery towards $10,522 (100% Fib level) or higher at $11,937. On the other hand, the bears will target profits at around 61.80% and 38.20% Fib levels at $7,959 and $6,365, respectively.

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