The price of bitcoin on Thursday extended the current mid-week gains towards $34,000 after bottoming at around $29,500 on Wednesday. Bitcoin has now surged to trade above the current levels of the 100-hour and the 200-hour SMA lines.
The price of the pioneer cryptocurrency has also skyrocketed to overbought levels of the 14-hour RSI in the 60-min chart. This could trigger a temporary pullback in the short-term. The BTC/USD appears to be on course to complete a double-bottom XABCD pattern formation.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, bitcoin continues to experience an upward momentum amid an increase in demand for cryptocurrencies in the financial markets. Several mainstream financial institutions, governments, and leading multinational corporations have embraced crypto. Furthermore, the US is expected to announce a third stimulus package aimed at boosting economic growth. This will further dilute the strength of the greenback raising the value of bitcoin.
The latest US economic data came out mixed. It provided the mid-week boost for the BTC/USD. The US durable goods orders for December missed expectations of 0.9% with 0.2%. The quarterly gross domestic product for Q4 also came short of expectations with 1.9% versus 2.4%. Personal consumption expenditures prices and core personal expenditures also came short of expectations. On The other hand, the initial and continuing jobless claims outperformed estimates.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the BTC/USD appears to be closer to completing a double-bottom XABCD reversal pattern in the 60-min chart. The bitcoin price has recently surged to cross to overbought levels of the 14-hour RSI. This could trigger a short-term pullback.
The bulls will be looking to extend the current bull-run towards $34.429 or higher to $35,326. On the other hand, the bears will target short-term pullbacks at around $32,717 or lower at $31,753.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the price of bitcoin appears to be trading within a sharply descending wedge formation. This indicates an abrupt change in market sentiment from bullish to bearish. It has now fallen to trade just above the 38.20% fib level on the way down.
The bears will look to ride the current bearish run towards 50% and 61.80% fib levels at $29,867 and $27,023, respectively. On the other hand, the bulls will target profits at around $36,247 or higher at $39,947.