Bitcoin Faces Strong Resistance at $10,800 After Channel Re-Entry

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The price of Bitcoin (BTC/USD) has bounced off the current short-term support level at around $10,500 to surge towards $10,860. However, it appears to be facing strong resistance at $10,600, which has stood firm since the middle of last month.

Bitcoin price is trading in a consolidative wedge following a recent re-entry. The trendline support appears set to hold firm through next week unless something changes fundamentally. The re-entry is a corrective move made after the bitcoin price made a bearish breakout from the bullish wedge towards the end of last month.

BTC/USD (Bitcoin) Fundamentals Overview

From a fundamental perspective, the price of bitcoin (BTC/USD) is trading at the back of a less eventful week, that has seen the greenback gains ground against rival currencies. Risk-on trading continues ahead of non-farm payrolls, which also explains the current consolidative movement. 

This week the US economic data has been mixed so far. On Tuesday, the ISM Manufacturing PMI missed expectations of 51.0 with 49.1 points. And on Wednesday, Continuing jobless claims beat with 1.662M but the initial claims missed slightly the expectation of 215k with 217k. Yesterday, the ISM Non-Manufacturing PMI beat with 56.4 versus an expectation of 54.0 while Factory Orders also impressed after delivering 1.4% growth for August versus a prediction of 1.0%. 

All eyes will be on the non-farm payrolls on Friday with the market expecting 158k jobs from last month down from 164k jobs in July. Depending on how the US labor market delivers, risk-on trading could seize momentarily with bitcoin benefiting from the shift in sentiment.

BTC/USD (Bitcoin) Technical Analysis (the 60-min Chart)

Technically, the BTC/USD (Bitcoin) appears to have recently hit overbought levels in the RSI Indicator. Bitcoin price is now enjoying strong support on the trendline confluence at around $10,500. 

This level will be an ideal profit target for the bears ahead of the NFPs. Higher profits can also be targeted at around $10,280. On the other hand, the bulls will look to target $10,860 for short-term profits while a bigger chunk of earnings can be realized at around $11,105.

BTC/USD (Bitcoin) Technical Analysis (the Daily Chart)

In the daily chart, the price of Bitcoin (BTC/USD) appears to be trading in a consolidative triangle formation. Bitcoin price is enjoying strong support at around $19,159 (long-term) and this could form the basis of the next breakout.

The price of the pioneer cryptocurrency has recently hit the trendline resistance, which means that a pullback could be imminent. 

In summary, the bears will be targeting long-term profits at around $9,873 or lower at $9,159. On the other hand, the bulls will hope that the BTC/USD can breach trendline resistance and surge towards $11,517 or higher at $12,295.

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