Bitcoin Price Rejects a Retest of 6-Month Lows After Plunge

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The price of bitcoin (BTC/USD) on Friday plunged to trade at around $7,378 just above the current 6-month lows of about $7,300. The bitcoin price has been trading in descending wedge over the last two weeks and Friday managed to make a bearish breakout amid a build-up of selling pressure in the cryptocurrency market.

Bitcoin is now pegged several levels below the current positions of the 100-hour and 200-hour SMA lines which indicates strong bearish pressure and has since dropped to oversold levels of the RSI indicator in the 60-min chart.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the price fo the pioneer cryptocurrency is trading at the back of another series of mixed events about cryptocurrencies. Today news broke out that Binance offices in Shanghai had been closed amid crypto crackdown. This triggered a major sell-off in the cryptocurrency industry.

However, later on, Binance denied those reports to spark a late rebound in the price fo bitcoin, but the recovery did not materialize. Binance has also reportedly entered the Indian market after acquiring India-based crypto exchange firm WazirX and is also said to be eying entry into the Australian market.

And with the latest series of economic data pointing an unclear picture with regard to the general outlook of the global economy, cryptocurrencies could gain some leeward going into the tail-end of the year.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin continues to experience extreme bearish pressure following Friday’s massive plunge. Bitcoin traded in a descending wedge for the last two weeks and has now branched out of that trend after falling to the oversold levels of the RSI indicator in the 60-min chart.

This creates interesting short-term bearish opportunities ging into Friday. The bears will target profits at around $7,506 or lower at $7,378 while the bulls will be hoping for a quick rebound towards $7,753 or higher at $7,894.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin still appears to be trading within a consolidative triangle formation, which seems destined to trigger the next major breakout. Both the 100-day and the 200-day SMA linea are several levels above the current position of the bitcoin price and this indicates extreme bearish pressure. 

Therefore, the bears will be looking to target long-term profits at around $7,000, $6,165, or lower at $5,307. On the other hand, the bulls will hope for a major rebound that could trigger a reversal towards $8,277, $9,190 or higher at $10,133.

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