The price of bitcoin (BTC/USD) on Friday pulled back to trade at a new 2-week low of about $8,965 before shortly bouncing back to top $9,000. The bitcoin price has been trading in a sideways channel over the last two weeks, but that now appears to be about to end with Friday’s massive drop.
The price of the pioneer cryptocurrency has now dropped to oversold levels of the RSI indicator in the 60-min chart while both the 100-hour and the 200-hour SMA lines are several pips above.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, the price of bitcoin is trading at the back of major developments in the US markets. The greenback has surged against rival currencies in the last few days and this explains bitcoin’s fall today.
Yesterday, news emerged that the US had reached an agreement with China to lift trade tariffs, and this boosted the mood in the market with the equities markets gaining on the day.
In terms of economic data, the US ISM non-Manufacturing PMI beat expectations of 53.5 with 54.7 while ISM NY-Business Conditions Index beat the expectation of 45.8 with 47.7.
In the UK, the Bank of England MPC vote on interest rates came in 7 (unchanged) against 2 (cut) thereby the decision keeping the base interest rate unchanged at 0.75%.
Bitcoin Price Technical Analysis (the 60-min Chart)
From a technical perspective, the bitcoin price appears to have recently made a bearish breakout from a sideways channel that dates back two weeks.
This could be a signal for an increase in bearish pressure in the market sentiment. And after dropping to oversold levels of the RSI indicator in the 60-min chart, this could be a good time for the bulls to target a rebound.
The bulls will be targeting short-term profits at around $9.000, $9,245, $9,468 or higher at $9,758. On the other hand, the bears will look to pounce for profits at around $8,715, $8,412, or lower at $8,151.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the price of bitcoin continues to trade under intense bearish pressure in a descending channel. The BTC/USD has recently bounced off both the trendline resistance and support lines but now seems headed back south following today’s plunge.
Therefore, the bears will be targeting long-term profits at around $8,330 or lower at $7,386. On the other hand, the bulls will hope for an immediate rebound back towards $9,868 or higher at $10,512.