Bitcoin Continues to Consolidate Below $10,000 Key Level

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The bitcoin price is trading within a consolidative wedge formation after facing strong resistance around the key level 10,000. The price of the pioneer cryptocurrency has been trading within a relatively sideways wedge since May, but things appear to be shaping up for a potential nosedive.

Bitcoin still appears to be trading closer to overbought levels, which means the recent pullback could continue through next week. It is currently pegged just below the 100-hour and the 200-hour SMA lines.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the price of bitcoin has been tipped by crypto enthusiasts to reach 100k once it eclipses its current historical high of about $20,000. Analysts have hyped bitcoin to hit the $20,000 market by the end of the year following last month’s halving. Some analysts have also discussed bitcoin’s potential as a safe-haven, which could propel it to about $520k within the next few years. This is partly because of COVID-19, which has demonstrated the importance of digital currencies in modern economies.

The Chinese government has already launched a digital currency that is running a pilot in various parts of the country. Other countries are expected to follow suit with similar programs already running in Japan and South Korea. Multinational Corporations like Facebook, JPMorgan, and IBM have also demonstrated their interest in crypto with some launching their own cryptocurrencies while others helping develop crypto infrastructures. This is working for the benefit of bitcoin and other cryptocurrencies. 

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin appears to be trading within a consolidative sideways wedge in the 60-min chart. However, the price of the pioneer crypto appears to be taking a nosedive amid increased bearish pressure over the last few days.

The bulls will be looking to pounce on potential short-term rebound profits at around $9,598 or higher at $9,875. On the other hand, the bears will look to extend the current downward trend towards $9,190 or lower at $8,899.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin still appears to be on the way up as it bids to recover from the plunge earlier this year. The BTC/USD is now trading just above the 76.40% Fib level below the $10,000 key level.

The bulls will be looking to extend this recovery to 100% Fib level at $10,522 or higher at $12,326. On the other hand, the bears will target long-term profits at 61.80% Fib level at $7,959, or lower at $6,265.

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