Bitcoin Extends Monthly Gain to Retest Three-Week High of $38,500

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The price of bitcoin (BTC/USD) on Friday extended the current monthly gains towards the current 3-week highs of about $38,500. The price of the pioneer cryptocurrency continues to trade within a gently ascending channel formation in the 60-min chart.

Bitcoin has now climbed above the current levels of the 100-hour and the 200-hour SMA lines. It pulled back late on Friday to avoid crossing to the overbought levels of the 14-hour RSI.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, bitcoin continues to enjoy a stellar campaign amid the coronavirus pandemic. The young generation identifies with the pioneer cryptocurrency as their preferred alternative for safe-haven investing amid the financial crisis. As governments across the world continue to boost their economies through economic stimulus packages, the currencies have witnessed some weakness while bitcoin has continued to strengthen.

Bitcoin is also benefiting from the growing acceptance in the mainstream financial markets. Top banking institutions, global payment platforms, and mobile wallets have all embraced bitcoin and several other cryptocurrencies. The closer bitcoin and crypto move towards the mainstream markets the higher the price of BTC/USD rises. Recent US economic data has boosted the greenback but bitcoin has remained resilient because of the long-term value that crypto enthusiasts place on it.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin appears to be trading within a gently ascending channel formation in the 60-min chart. This indicates a slight short-term bullish bias in the market sentiment. Bitcoin pulled back late on Friday to avoid crossing to overbought levels of the 14-hour RSI.

The bulls will look to extend the current short-term gains towards $40,025 or higher to $41,912. On the other hand, the bears will target pullback profits at around $36,198 or lower at $34,016.

Bitcoin Price Technical Analysis (the Daily Chart)

 

In the daily chart, the BTC/USD appears to be trading within a highly volatile descending channel formation. Bitcoin has recently bounced off the trendline support to rally towards current 3-week highs.

The bulls will be looking to push the price of the pioneer crypto towards new historical highs of $42,781 or higher to $47,861. On the other hand, the bears will target more pullbacks at 38.20% and 61.80% fib levels at $32,710 and $27,057, respectively.

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