The bitcoin price on Friday extended gains to touch a new multi-month high of $9,003. However, the price of the pioneer cryptocurrency pulled back late on as the bulls began to take profits ahead of the weekend.
The price of bitcoin has been on a cyclical bullish run over the last seven days and this could continue through next week after Friday’s breather. The bitcoin is also approaching overbought levels of the RSI index in the 60-minute chart, which could become a key resistance.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, the bitcoin is trading at the back of a disappointing week based on the latest round of economic data. This has weakened investments in capital markets, especially stocks. In turn, the safe-haven bitcoin and fellow cryptocurrencies have continued to benefit.
The geopolitical risk attached to the US -Iran conflict appears to have subsided. However, the stalemate in the trade talks with China is still putting pressure on the market. As such, cryptocurrency prices are now on a bull-run despite the apparent return of calm in the market.
This week, the US CPI and PPI ex-energy and fresh foods missed expectations. This adds to last week’s disappointing non-farm payrolls. In the UK, the CPI also missed expectations on several counts while in the EU the CPI managed to match expectations.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the bitcoin price appears to be trading in an ascending cyclical pattern. This indicates a short-term bullish bias in the market sentiment. Bitcoin is also closer to touching the boundary to the overbought levels of the RSI indicator in the 60-min chart. This could result in a pullback.
Therefore, the bulls will be targeting short-term profits at around $9,003 or higher at $9,170. On the other hand, the bears will target opportunities below the median line of Andrews’ Pitchfork at $8,750 or lower at $8,590.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the price of bitcoin is trading within a consolidative triangle that has a slight bullish bias. The price of the pioneer crypto is pegged between the 100-day and the 200-day SMA lines This indicates short-term consolidation amid a lack of momentum to carry on with the recovery.
Therefore, the bulls will be targeting long-term profits at around $9,635 or higher at $10,605. On the other hand, the bears will hope for a major pullback towards $7,763 or lower at $6,734.