Bitcoin Moves Closer to Overbought Conditions After Trendline Rebound

The bitcoin price on Wednesday surged to trade at around $41,736 after bottoming earlier this week. The pioneer cryptocurrency found support off the trendline support after reaching a new monthly low of about $39,470.

The bitcoin price (BTC/USD) has now rallied to trade around the 100-hour moving average in the 60-min chart. However, after rallying closer to the overbought conditions of the 14-hour RSI, the BTC/USD could be about to pull back.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the bitcoin price is trading at the back of a relatively busy period in the US market. Therefore, although the general crypto market remains considerably mixed in terms of sentiment, this week’s US data seems to have weakened the dollar, resulting in the current rebound.

On Wednesday, the US producer price index for March beat both the (MoM) and (YoY) expectations. The PPI ex-food and energy also outshone expectations on both counts. However, on Tuesday, the consumer price index ex-food and energy for March came short of both the (MoM) and (YoY) expectations, while the general CPI beat the (YoY) estimate and matched the (MoM) equivalent.

Looking forward, traders will be anticipating Thursday’s US retail sales data to gauge the potential movement of the dollar, which could indicate the next stop for the BTC/USD.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin seems to be trading within an ascending channel formation in the 60-min chart. The BTC/USD appears to have rallied closer to the overbought conditions of the 14-hour RSI. This indicates a short-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current rally towards $42,758, or higher to $43,315. On the other hand, the bears will be targeting potential pullbacks at about $40,371, or lower at $39,428

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the bitcoin price appears to be trading within a gently ascending channel formation. However, the pioneer cryptocurrency has recently pulled back to retest the trendline support before attempting another rebound.

Therefore, the bulls will target potential rebound profits at about $46.910, or higher at $52,076. On the other hand, the bears will look to extend declines towards $36,074 or lower to $31,034.

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