The bitcoin price on Friday recovered to surge above $5,550 after hitting a new multi-month low of $3,828 earlier on. This comes amid the growing spread of the coronavirus, which has affected global financial markets.
The price of bitcoin has now recovered from oversold levels of the 60-min RSI but is still several levels below the 100-hour and the 200-hour SMA lines. This creates targets for the bulls going into next week.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, the price of the pioneer cryptocurrency appears to be suffering from the same thing that is affecting the global financial markets. The impact of the coronavirus has pushed markets to the limit with businesses in some sectors like sports and entertainment coming to a halt. This could continue until the world gets a hold of the pandemic to control mitigate the spread.
The price of bitcoin is also suffering from a relatively significant week in the US markets. President Trump’s announcement of a travel ban placed on European countries into the US has triggered a bullish sentiment. This has boosted optimism in the stock market, which has strengthened the greenback against cryptocurrencies.
Economic data this week including CPI ex-food and energy and PPI ex-food and energy was relatively mixed. The former beat and matched the (YoY) and (MoM) estimates, respectively. The latter missed in both cases.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the price of bitcoin appears to be trading under extreme bearish pressure following this week’s massive plunge. Friday’s attempted rebound appears to be lacking momentum. This means that further declines can be expected next week.
Therefore, the bears will be targeting short-term profits at around $4,618. On the other hand, the bulls will be targeting recovery towards $6,376.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the price of bitcoin appears to be trading under extreme bearish pressure. This signifies a long-term bearish bias in the market sentiment. It comes in the formation of a consolidative bearish wedge.
Therefore, the bears will be targeting long-term profits at around $3,867 or lower at $1,921. On the other hand, the bulls will look to pounce for profits at around $7,303, or higher at $9,468.