The price of bitcoin (BTC/USD) continued with its recovery on Thursday to recover Monday’s losses that saw its bottom at a new multi-month low of about $6,540. The price of the pioneer cryptocurrency has since rallied to top $7,500 and was on Thursday evening trading at $7,575.
The bitcoin price appears to have recently completed an inverted head-and-shoulders reversal pattern following an extended period of declines that dates back to the start of this month.
Bitcoin Price Fundamentals Overview
The price of bitcoin has managed to recoup the losses incurred between November 21st and 25th during a thinly trading period that culminated with the Thanksgiving holiday on Thursday. The main driving force behind bitcoin price woes is related to negative news in the cryptocurrency market that includes China shutting down the operations of all cryptocurrencies and crypto exchanges in the country.
This has resulted in a relative increment in the level of volatility with some traders rushing to empty their coffers. However, with a relative lack of activity in the US market, bitcoin appears to have found some footing and on Thursday continued to extend its recovery.
In general, the latest round of economic data from around the world has been mixed thereby providing no clear direction for capita investors and this has made bitcoin relatively attractive going into the tail-end of the month.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the price of bitcoin appears to have recently completed an inverted head-and-shoulders reversal pattern in the process recouping nearly all the losses incurred since November 21. The bitcoin price is now back trading within the sharp consolidative triangle pattern after breaking out prematurely last week.
Therefore, the bulls will be targeting short-term profits at around $7,728, $8,011 or higher at $8,237 going into Friday. On the other hand, the bears will hope for a quick pullback towards $7,434, $7,113, or lower at $6,866.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the bitcoin price appears to have recently made a major breakout downwards below the key level at $7,000. This could trigger a major decline in the price of the pioneer cryptocurrency towards new multi-month lows after recently falling to $6,540.
Therefore, the bears will be targeting long-term profits at around $7,000, $6,588, $6,165 or lower at $5,307. On the other hand, the bulls will hope for a quick return to the top towards $7,975, $8,369, $9,151 or higher at $10,131.