The bitcoin price bounced off the current weekly lows of about $10,120 to surge above $10,300 in a consolidative pattern formation. However, bitcoin still lacks enough momentum to create a directional bias in the market despite recently hitting a multi-month high of $10,522.
The price of the pioneer cryptocurrency appears to have found support off the 100-hour SMA line, which triggered today’s rebound. The RSI indicator also shows that there is some room to run up top, which will keep the bulls optimistic.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, bitcoin is trading at the back of a significantly busy period in the US market. While the coronavirus continues to rage havoc on global markets, things appear to be continuing as usual in the US markets. This is partly because of an upbeat earnings season that has seen most of the fortune 500 companies beat expectations.
Based on the latest economic data from the US, the BTC/USD could continue to experience difficulties establishing a directional bias. The US CPI for January beat on the (YoY) basis but missed the (MoM) expectation. Retail sales group missed expectations on Friday alongside the (YoY) import price index for January. On the other hand, the Michigan consumer sentiment index beat the expectation of 99.5 with 100.9.
The initial jobless claims also outperformed forecast with 205k claims versus 210k expected. However, the Monthly Budget Statement for January showed a bigger deficit than expected with $-33B versus $-11.5B.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the price of bitcoin appears to be experiencing a short-term bullish bias. The BTC/USD continues to trade in an ascending channel with the 100-hour SMA acting as strong support. This bull-run now appears to be lacking enough momentum to carry it further, which could result in a temporary pullback.
Therefore, the bulls will be targeting short-term profits at around $10,414 or higher at $10,522. On the other hand, the bears will look to pounce for profits at around $10,139, $9,998, or lower at $9,806.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the bitcoin price appears to be trading under strong bullish pressure in an ascending curve. This comes after the price of the pioneer cryptocurrency bottomed at around $6,885 at the start of the year. Bitcoin has also surged to overbought levels of the RSI indicator in the daily chart. This could trigger the next pullback.
The bulls will be targeting long-term profits at around $11,070, $12,195, or higher at $13,449. On the other hand, the bears will target pullback profits at around $9,556, $8,027 or lower at $6,885.