Bitcoin Extends Short-Term Gains Above $21,000

The bitcoin price on Friday extended the current rally to $21,000, after bottoming at $18,850 on Wednesday. The price of the pioneer cryptocurrency continues to oscillate within an ascending channel formation in the 60-min chart.

The BTC/USD has now advanced to trade several levels above the 100-hour moving average line. As a result, the bitcoin price now seems closer to reaching the overbought conditions of the 14-hour RSI.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, bitcoin is trading at the back of a relatively busy period in the market. While the crypto winter continues to have a huge impact on cryptocurrency prices, the BTC/USD this week benefitted from the latest US inflation data, whereby consumer prices 9.1% in June (YoY). On Wednesday, the US consumer price index ex-food and energy also posted a massive (YoY) change of 5.9% compared to the expectation of 5.7%, while the (MoM) equivalent beat 0.6% with a change of 0.7%. On Friday, the US retail sales control group also posted stronger than expected numbers.

US President Joe Biden commented on the inflation data saying that it was outdated. The Federal Reserve is expected to hike the base interest rate by 100 basis points as part of measures taken to curb the rising inflation. Investors are now trying to balance the inflation impact on the stock market by diversifying to alternative investments.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the BTC/USD seems to be trading within an ascending channel formation in the 60-min chart. This indicates a significant long-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to ride the current rally towards $21,356, or higher to $21,687. On the other hand, the bears will be targeting potential pullback profits at about $20,792, or lower at $20,449.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the bitcoin price seems to be trading within a sideways channel formation. This indicates a lack of clear directional bias in the market sentiment. The BTC/USD also seems to be enjoying solid support at around $18,890.

The bulls will be looking for potential breakout profits at about $22,888, or higher at $26,462. On the other hand, the bears will be targeting long-term profits at about $18,894, or lower at $15,636.

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