Bitcoin on Tuesday extended current monthly gains to a new 4-week high of about $51,760 following the latest round of the US data. The BTC/USD continues to trade within a sharply ascending channel formation in the 60-min chart.
Bitcoin has now surged several levels above the 100-hour moving average. The pioneer cryptocurrency also spiked to the overbought conditions of the 14-hour RSI following Tuesday’s rally. As a result, a short-term pullback could be on the horizon.
Bitcoin Price Fundamentals Overview
The bitcoin price continues to benefit from positive reports around the crypto industry. Recent reports indicate that Brazil could make bitcoin a legal tender currency but under strict guidelines. The pioneer cryptocurrency is also benefiting from increasing institutional activity in the market. Moreover, U.S. Bank, America’s fifth-largest bank revealed in a press release that it will make custody services available in Bitcoin, further boosting the sentiment around the BTC.
On the other hand, the greenback continues to receive mixed signals from the latest round of US data. On Tuesday, the US ISM Services PMI for September beat the expectations of 60 with 61.9. The ISM Services New Orders Index also outshone estimates while the Prices Paid and the ISM Services Employment Index missed expectations.
Traders will be looking forward to Friday’s US jobs data and the unemployment rate.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the BTC/USD appears to be trading within a sharply ascending channel formation in the 60-min chart. Bitcoin has also surged to the overbought conditions of the 14-hour RSI. Therefore, a pullback could be imminent.
The bulls could look to extend short-term gains towards $52,937 or higher to $54,003. On the other hand, the bears will target potential pullback profits at approximately $50,352 or lower at $49,169.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, bitcoin seems to be trading within a gently ascending channel formation. It has now surged closer to the overbought conditions of the 14-day RSI. This indicates a significant long-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to extend the current bull run towards 457,806 or higher to $63,344. On the other hand, the bears will target potential reversals at about $6,146, or lower at $40,145.