Bitcoin Falls Towards $6,700 as Bears Remain Resilient at $7,000

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The price of bitcoin on Friday pulled back towards $6,700. This came after reaching a new 3-week high of about $7,305 as bears held firm to the $7,000 key level. The bitcoin price continues to trade within a consolidative bullish triangle, which signals a potential breakout.

Bitcoin is pegged above the 100-hour and the 200-hour SMA lines; which comes amid a sustained consolidative bull-run. Friday’s pullback pushed it back to trade within the normal trading zone of the 60-min 14-period RSI.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, bitcoin is trading at a period when the ravaging coronavirus pandemic continues to affect global financial markets. The global country lockdowns have slowed business activity. This has pushed governments to introduce stimulus packages in a bid to cushion their economies against the adverse effects of COVID-19. 

The US tops in terms of the stimulus package announced after President Trump signed a $2.2 trillion bill that will see cahs advances and forgivable checks given to businesses and households. This has strengthened the position of the US dollar amid adverse market conditions. As such, the BTC/USD has struggled for direction in recent trading sessions, with the bulls slightly edging the bears.

The latest US economic data was relatively mixed.  The ISM Manufacturing PMI, the ADP Employment Change and ISM Manufacturing Employment Index, all beat expectations. On the other hand, the initial jobless claims, the non-farm payrolls and the unemployment rate missed by a landslide while average hourly earnings grew by 3.1% versus an ex[ectation of 3.0%.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the BTC/USD appears to be trading in a consolidative bullish triangle. This indicates a short-term bullish bias in the market sentiment. However, the $7,000 price level continues to provide strong resistance as the bears remain resilient.

Therefore, the bears will be targeting short-term pullback profits at around 50% and the 38.20% Fib levels at $6,478 and $5,892, respectively. On the other hand, the bulls will look to pounce at around 61.80% and 76.40% Fib levels at $7,129 and $7,886, respectively.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the bitcoin price appears to have recently rebounded off new multi-month lows of about $3,800. The BTC/USD has since recovered from oversold levels of the daily 14-period RSI. It is on course to complete a XABCD reversal pattern.

The bulls will look to extend the current gains towards $8,669 or higher at $9,961. On the other hand, the bears will look to retain long-term control by targeting profits at $5,073 or lower at $3,800.

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