Bitcoin Faces Strong Resistance at $12,000 But Bulls Retain Control

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The bitcoin price on Friday pulled back off the key resistance zone at $12,000 to trade at around $11,714 in a consolidative wedge formation. The BTC/USD trades within a slightly ascending wedge with a flat top and a rising base. 

Bitcoin is now pinned just above the 200-hour SMA in the 60-min chart. The 100-hour SMA is pinned slightly below after crossing under the 200-hour SMA. The price of the pioneer cryptocurrency continues to trade just off the 76.40% Fib level on the way up.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, bitcoin is trading at the back of a relatively busy period in the US market. The US market released several economic figures during the week that give a direction of where the market is headed. There are also some doubts about whether another round of quantitative easing will be rolled out to stimulate the economy. In addition, coronavirus cases continue to rise with the death toll in the US now passing the 170k mark. It could be a while before an effective vaccine is found. This continues to give safe-haven investments like bitcoin and gold a bullish outlook.

In the US, the CPI ex-food and energy for July beat the (MoM) and (YoY) expectations of 0.2% and 1.1%, respectively with 0.6% and 1.6% on Wednesday. On the other hand, general CPI outperformed 0.3% (MoM) and 0.8% (YoY) with 0.6% and 1.0%, respectively. Earlier in the week, the equivalent measures for PPI beat expectations on all counts. On Thursday, the initial and continuing jobless claims outperformed 1.12M and 15.898M, respectively with 963k and 15.486M.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the BTC/USD appears to be trading within an ascending consolidative wedge in the 60-min chart. This indicates a slight bullish bias in the market sentiment. The pair continues to enjoy support from the 100-hour and the 200-hour SMA lines while the $12,000 level is a key resistance zone.

The bulls will be looking to stretch the current gains towards $11,931 or higher to $12,138. On the other hand, the bears will target short-term pullback profits at around $11,528 or lower at $11,338.

Bitcoin Price Technical Analysis (the Daly Chart)

In the daily chart, the price of bitcoin appears to be facing strong resistance around the $12,000 level after a breakout rally. It also appears to enjoy strong support at around $10,700. 

The bulls will be looking to build on the current run of gains by targeting long-term profits at around $12,837 or higher at $13,894. On the other hand, the bears will look to pounce at around $10,706 or lower at $9,498.

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