Bitcoin Bulls Look to Defend Key Support at $8,000 as Pressure Builds

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The price of bitcoin (BTC/USD) continues to trade in a sideways channel with the bulls fighting hard to defend the support level at $8,000. Bitcoin price plunged late last month after completing a consolidative triangle formation in a bearish breakout.

 The BTC/USD has since managed to hold firm above the key level $8,000 after momentarily plunging to bottom at around $7,724.  It continues to trade within the normal trading zone of the RSI indicator in the 60-min chart, which suggests that the current trend could continue through next week.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the price of bitcoin is trading at the back of a disappointing week following the latest round of economic data from around the world. Cryptocurrency prices have also been under increased pressure in recent trading sessions because of a change in market sentiment towards the industry.

Last week there was a massive crypto selloff and while this appears to have eased this week, the pressure is still building up. PayPal has ended plans to support Facebook’s Libra cryptocurrency and this adds to the growing woes facing the social media giants plans to disrupt the cryptocurrency industry.

Meanwhile, the US ISM manufacturing PMI missed expectations on Tuesday, as did the ISM non-Manufacturing the ISM NY-Business Conditions index. The Spanish and the Swiss GDP for Q2 also came in short of expectations while Italian CPIs fro last month disappointed. Clearly the business environment is becoming more bearish going into the tail-end of the year and this could continue to affect cryptocurrency prices.

Bitcoin (BTC/USD) Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin is currently pegged below the 100-hour and the 200-hour moving average lines and this indicates a short-term bearish bias in the market sentiment. It continues to enjoy strong support around the $8,000 level but it remains to be seen how long the bulls can defend this level.

Therefore, the bears will be targeting short-term profits at around $7,774 or lower at $7,451. On the other hand, the bulls will hope for a major rebound by targeting profits at around $8,643 or higher at $8,807.

Bitcoin (BTC/USD) Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin (BTC/USD) appears to be forming another consolidative pattern following last week’s bearish breakout. The bitcoin price is still pegged close to the oversold levels of the RSI indicator in the daily hart and this indicates that there is not much room left to run down below.

Therefore, the bulls will be optimistic in the long-term trading market and could target profits at around $9,604 or higher at $10,323. On the other hand, the bears will be hoping that the bearish run can continue towards $6,656 or lower at $5,975.

In summary, the price of bitcoin appears to be experiencing intense bearish pressure in both long-term and short-term markets but the bulls will be more optimistic of a reversal going into next week.

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