Bitcoin Continues Recovery, Extends Monthly Gains Towards $9,200

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Bitcoin continued to recover off 5-week lows on Friday after extending current monthly gains towards the $9,200 key level. The price of the pioneer cryptocurrency had plunged to trade at around $8,400 earlier in the month but has since bounced back after a triple bottom pattern formation. 

The bitcoin price has now resumed trading within the descending channel. The smaller ascending channel will face strong resistance at the main trendline, which could restrict a breakout. Bitcoin is also closing in on the overbought levels after this week’s recovery.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the BTC/USD is trading at the back of a relatively busy period in the global market. The coronavirus has put pressure on global markets amid a relative rise in investment risk. This has affected bitcoin alongside other investment assets. There is a genuine fear of a global financial crisis if the coronavirus continues to spread.

Besides the virus, the bitcoin price is also affected by this week’s decision by the Federal Reserve to cut interest rates. This has boosted cryptocurrency prices amid reduced interest in US equities and fixed-income investments. 

Furthermore, the latest US economic data is sending mixed signals after disappointing on multiple levels. Earlier in the week, the ISM Manufacturing and Markit Manufacturing data missed expectations. On the other hand, the ISM non-manufacturing was impressive, which signaled strength in the services sector. Yesterday, the initial jobless claims missed expectations but on Friday, the non-farm payrolls impressed with 273k jobs versus 175k expected.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the bitcoin price appears to be trading under significant buying pressure in the 60-min chart. This indicates a short-term bullish bias in the market sentiment. The 100-hour SMA has crossed over the 200-hour SMA to signal a potential trend reversal.

Therefore, the bulls will be targeting short-term profits at around $9,273 or higher at $9,468. On the other hand, the bears will look to retain control by targeting profits at around $8,949 or lower at $8,786.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin appears to have recently pulled back off a major recovery. Bitcoin had rallied to top $10,400 in February but has since dropped to trade at around $9,100. It recently bounced off $8,278.

Therefore, the bears will be targeting long-term profits at around $8,027 or lower at $6,885. On the other hand, the bulls will look to pounce on profits at around $10,405, or higher at $11,441.

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