The bitcoin price on Wednesday extended declines to trade at about $29,141, falling off Tuesday’s highs of about $30,674. The price of the pioneer cryptocurrency continues to oscillate within a descending channel formation in the 60-min chart.
Bitcoin has now plunged to trade several levels below the 100-hour moving average line. However, the BTC/USD bounced back late on Wednesday to prevent the price from falling deep into the oversold conditions of the 14-hour RSI.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, the BTC/USD is trading at the back of a relatively busy period in the US market. The crypto market is yet to recover from last week’s Terra (LUNA) crash. The entire industry market experienced significant declines with scepticism rising amid the fear more cryptocurrencies could follow the LUNA plunge. Moreover, the US economic data for this week has been promising, thus boosting the greenback against the BTC.
Nonetheless, with the crypto market still attracting a significant inflow of venture capital funding, this creates more optimism as alternative token prices continue to rebound. Cryptocurrency whales are also accumulating bitcoin in numbers with El Salvador recently buying 500 BTC at an estimated transaction value of about $15 million.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the BTC/USD seems to be trading within a descending channel formation in the 60-min chart. This indicates that the price of the pioneer cryptocurrency is experiencing a short-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current sequence of declines towards $28,8474, or lower to $27,788. On the other hand, the bulls will be targeting potential rebond profits at about $29,917, or higher at $30,674.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the bitcoin price seems to be trading within a sharply descending trend formation. This indicates a strong long-term bearish bias in the market sentiment.
Therefore, the bears will be looking to retain control of the BTC price by targeting profits at about $25,474, or lower at $21,848. On the other hand, the bulls will target potential long-term reversals at about $32,457, or higher at $35,681.