Bitcoin Bulls Run Out of Steam After Rallying Near 12-Month Highs

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The price of bitcoin on Friday rallied to retest the current 12-month highs of about $11,390 before running out of steam late on. The price of the pioneer cryptocurrency is trading within a consolidative triangle made up of a flat top and rising support.

Bitcoin has remained above the 100-hour and the 200-hour SMA lines in the 60-min chart since July 20. It is now approaching overbought levels of the 14-hour RSI after pulling back in mid-week.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the price fo Bitcoin BTC/USD is trading at the back of a relatively busy period in the US market. The coronavirus pandemic continues to exert pressure on US equity markets despite what has so far been a successful earnings season. The fear of the second wave of COVID-19 appears to be deterring investors from taking positions in high-risk capital assets. This has paved way for safe-haven assets like gold and bitcoin to benefit.

During the week, the US Federal Reserve chose to keep the base interest rate unchanged at 0.25%. This was widely expected in the market. As such, it had no real impact. Earlier in the week, durable goods orders ex-transportation missed the expectation of 3.5% with 3.3% while durable goods orders ex-defense came short of 18.6% with 9.2%. On the other hand, nondefense capital goods orders beat 2.3% with 3.3% while general capital goods orders outperformed 7.2% with 7.3%.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin appears to be trading within a consolidative triangle formation. The flat top and a rising base signal a potential bullish breakout in the near future. It has now risen closer to overbought levels of the 14-hour RSI in the 60-min chart.

The bulls will be looking to extend the current gains towards $11,589 or higher T $11,808. On the other hand, the bears will target short-term pullback profits at around $11,186 or lower at $10,971.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin (BTC/USD) appears to be trading in a sharply rising curve. This indicates a strong long-term bullish bias in the market sentiment. Bitcoin has already crossed to overbought levels of the 14-day RSI. This could trigger a short-term pullback.

The bears will target the pullback at around $10,482 or lower at $9,237. On the other hand, the bulls will look to extend the gains towards $12,183 or higher at $13,327.

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