The Bitcoin price (BTC/USD) on Friday plunged sharply to trade below the 100-day moving average, confirming entrance into new bear territory. The price of the Pioneer cryptocurrency continues to trade within a sharply descending channel formation in the 60-min chart.
The BTC/USD has now fallen several levels below the 100-hour moving average. It has since entered the oversold conditions of the 14-hour RSI after declining to trade below $51,520.
Bitcoin Price Fundamentals Overview
The BTC/USD is trading at a time of market uncertainty amid the Omicron variant of Covid-19. The latest variant was confirmed this week to be highly transmissible, thus causing anxiety in the travel industry. Many countries have already tightened their immigration rules to curb the spread of the new strain. As a result, global financial markets crashed this week with investors moving away from risky investments.
From a positive perfective, Bitcoin and other cryptocurrencies continue to gain penetration, with more mainstream multinational corporations embracing crypto. Therefore, while the pandemic-related crush could push the BTC/USD lower, the long-term outlook remains solid.
The bitcoin price may also be affected by this week’s US data, which falling short of estimates on Non-farm payrolls and wage growth, showed a significant decline in the unemployment rate. Moreover, the ISM Manufacturing data was slightly above expectations earlier in the week.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the BTC/USD seems to be trading within a sharply descending channel formation in the 60-min chart. This indicates a strong short-term bearish bias in the market sentiment.
Therefore, the bears will be looking to extend the current declines towards $52,696 or lower to $51,517. On the other hand, the bulls will be targeting potential rebounds at about $54,871, or higher at $55,926.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the bitcoin price seems to be trading within a descending channel formation after rallying to set new all-time highs. As a result, the BTC/USD has pulled back to trade closer to the oversold conditions of the 14-day RSI.
Therefore, the bears will be looking to ride the current bearish run by targeting profits at about $49,352 or lower at $44,601. On the other hand, the bulls will be targeting rebounds at about $58,844, or higher at $63,436.