Bitcoin Extends All-Time Highs Above $40k as Bulls Target $50k

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The bitcoin price on Friday extended the current gains to a new all-time high of about $41,986 before pulling back late on to settle at $40,637. Bitcoin maintains a bullish outlook in the market sentiment after its sharpest rally ever took it from about $28,000 to close to $42,000 in just four days.

The late pullback on Friday prevented the price of bitcoin from crossing to overbought levels of the 14-hour RSI in the 60-min chart. It remains several levels above the 100-hour and the 200-hour SMA.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the bitcoin price is trading at the back of a relatively busy period in the US market. The pioneer cryptocurrency has enjoyed a massive rally since the start of the year, which follows last year’s bullish sentiment. The coronavirus pandemic has continued to boost the appetite for bitcoin as an alternative safe-haven asset for young investors. The US stimulus package has also helped the BTC to strengthen against the USD. 

The latest round of US data was relatively positive amid two key negative figures. The ADP Employment change for December missed expectations with -123k versus 88k. The jobs data also failed to match the expected count of 71k with -140k. However, the unemployment rate for the period beat the expectation of 6.8% with a rate of 6.7%. The average hourly wage growth also outperformed the (YoY) estimate of 4.4% with a change of 5.1%.

Earlier in the week, both the ISM Manufacturing PMI and the Services PMI beat expectations.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, bitcoin appears to be experiencing a strong short-term bullish pressure in the market sentiment. The price of the pioneer cryptocurrency continues to trade within an ascending curve in the 60-min chart.

The bulls will be looking to ride this curve by targeting profits at around $41,277 or higher at $41,986. On the other hand, the bears will target short-term pullbacks at around $39,900 or lower at $39,067.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the BTC/USD appears to be skyrocketing towards the mid-$40ks with $50k well in sight for the bulls. This indicates a strong long-term bullish bias in the market sentiment. Bitcoin has already crossed to overbought levels in the 14-day RSI.

The bulls will be looking to extend the current bull-run towards $44,144 or higher to $47,992. On the other hand, the bears could target unlikely long-term pullbacks at around $37,389 or lower at $33,545.

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