Bitcoin Price Holds Firm Above $8,000 After Bouncing Off Weekly Lows

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The price of bitcoin (BTC/USD) on Friday bounced off new weekly lows of about $7,666 at the 50% Fib level to top the $8,000 key level. The price of the pioneer cryptocurrency plunged at the start of this week shortly after hitting a new multi-month high of $8,471.

The bitcoin price is now trading well above the current levels of the 100-hour and the 200-hour SMAs in the 60-min chart. Today’s rebound also pushed the BTC/USD closer to the overbought levels of the RSI indicator.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the price of bitcoin is trading at the back of a relatively busy week in the US market. This comes hot on the heels of a tense geopolitical period that saw the US and Iran participate in retaliatory attacks in the Persian Gulf last week, which extended to the stary of this week. However, after calm returned to the market, bitcoin plunged as it began to lose a bit of its ‘safe-haven’ flare.

Nonetheless, the bitcoin price was up again in the afternoon trading session following the announcement of the US non-farm payrolls for December. On Friday, the US jobs data showed that the labor market created 156k new jobs last month. Analysts were expecting an average of 164k jobs. 

The average (YoY) hourly wage growth also missed the expectation of 3.1% after edging lower from the previous month’s reading of 3.1% with 2.9%. The unemployment rate was in line with expectations after steadying at 3.5%.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the BTC/USD appears to be experiencing a short period of high volatility following the recent turn of events. The US-Iran conflict appears to be at the center of it all. However, traders can still target the key Fib level to lace their positions heading into the weekend.

The bulls will target short-term profits at around $8,222 just above the 23.60% Fib level or higher at the 0.00% Fib level at $8,471. On the other hand, the bears will hope for an immediate pullback towards the 38.20% Fib level at $7,851 or higher at 50% Fib level at $7,666.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the bitcoin price appears to be trading within a descending channel, which indicates a long-term bearish bias in the market sentiment. The price of the top cryptocurrency has recently touched the border to the overbought levels of the RSI indicator in the daily chart. This could trigger a pullback soon. 

Therefore, the bears will be targeting short-term profits at around $7,102 or lower at $6,427. On the other hand, the bulls will be looking to pounce for profits at around $8,741 or higher at $9,389.

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