The price of Bitcoin (BTC/USD) on Friday bounced off the $60,000 level to surge above $62,000 ending a week on a positive note. The price of the pioneer cryptocurrency had extended gain to a new historical high of about $64,789 earlier in the week before plunging in mid-week.
Bitcoin continues to trade within a descending channel formation in the 60-min chart. The latest rebound pushed the BTC/USD off oversold levels of the 14-hour RSI back to the normal trading zone.
Bitcoin Price Fundamentals Overview
Bitcoin is trading at a relatively busy period in the US market. The pullback in mid-week was triggered after one of the top crypto investors, Elon Musk said that the current pricing was excessive. Bitcoin is also suffering from a surprise resurgence of Ethereum, which has seen its stock rise. The price of Ethereum is up nearly 60% over the last three weeks, which compares to Bitcoin’s 23% rise. Some crypto enthusiasts have even suggested that Ethereum could soon take over from bitcoin as the world’s most valuable crypto.
Another factor that may be affecting the price of bitcoin is the launch of the digital Yuan. China launched its pioneer government crypto at the start of the week and this is seen as another bitcoin rival. Nonetheless, bitcoin has already garnered enough credit over the years and this will keep it high in the pecking order when it comes to deciding which crypto to invest in.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, bitcoin appears to be trading within sharply descending channel formation in the 60-min chart. This indicates a strong short-term bearish bias in the market sentiment. Friday’s rebound pushed the BTC back to the normal trading zone of the 14-hour RSI.
The bulls will be looking to extend the current rebound towards $62,454 or higher to $63,244. On the other hand, the bears will target short-term profits at around $61,000 or lower to $60,000.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the price of bitcoin appears to be trading within a sharply ascending channel formation. This indicates a strong long-term bullish bias in the market sentiment. It appears to be moving closer to overbought levels of the 14-day RSI.
The bears will target long-term pullback profits at around $58,000 or lower at $55,000. On the other hand, the bulls will look to ride the current bull-run towards $65,000 or higher to 68,000.