The bitcoin price on Friday plummeted to a new 4-week low of about $20,661 following its latest pullback. The pioneer cryptocurrency has now fallen to trade below the 100-hour moving average line in the 60-min chart.
The BTC/USD also seems to have completed a downward breakout from a gently ascending channel formation, sending the crypto price closer to the oversold conditions of the 14-hour RSI.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, bitcoin is trading at the back of a relatively busy period in the US market. On Friday, the Michigan Consumer Sentiment Index came in stronger with a reading of 58.2 compared to an expectation of 55.2. This boosted the greenback, thus pushing the BTC/USD lower.
However, investors would also be looking at both the personal income and spending data, which missed expectations. The core personal consumption expenditures price index for July also missed estimates on both the (MoM) and (YoY) basis.
Earlier in the week, the US gross domestic product for Q2 also impressed, beating expectations, while the initial and continuing jobless claims came in lighter than expected, sending positive sentiments to the market. Meanwhile, the bitcoin price is still affected by the unending crypto winter that saw cryptocurrency prices fall during the week.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the BTC/USD seems to have recently completed a downward breakout from an ascending channel formation in the 60-min chart. This indicates an abrupt change in the market sentiment from slightly bullish to bearish.
Therefore, the bears will be looking to stretch the current pullback towards $20,318 or lower to $19,908. On the other hand, the bulls will be targeting potential rebound profits at about $21,057, or higher at $21,517.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the price of bitcoin appears to have also completed a downward channel breakout from an ascending channel formation. This indicates an abrupt change in the market sentiment from bullish to bearish.
Therefore, the bears will be targeting long-term profits at about $19,255, or lower at $17,661. On the other hand, the bulls will look to pounce on potential rebounds at about $22,443, or higher at $24,436.