Bitcoin Pulls Back Below $10,200 After Retesting Weekly Highs at $10,370

Free $100 Forex No-Deposit Bonus

Bitcoin price pulled back on Friday to trade below $10,200 following yesterday’s rally that saw it top $10,370. The price of bitcoin has been trading in a consolidative triangle formation in recent weeks managing to break out below the trendline support yesterday before spiking again to trade near $10,400.

The price of the pioneer cryptocurrency is currently pegged just above the 100-hour moving average line and slightly below the 200-hour line. This supports the current case of short-term consolidation with a slight bullish bias in the market sentiment.

Bitcoin (BTC/USD) Fundamentals Overview

From a fundamental perspective, the price of bitcoin is trading at the back of a busy week in the global financial markets. On Wednesday, the EU CPI core came in line with expectations while Italy had a mixed bag of data during the week.

On the other hand, the UK CPI missed expectations as did the Canadian CPI. The Swiss National Bank (SNB) kept the base interest rate unchanged, while in the US, the Federal Reserve cut the Funds rate by a further 25 basis points to add to the quarter-point cut earlier this year. 

The US industrial production beat expectations of 0.2% change with 0.6% change while capacity utilization edged the expectation of 77.6% with 77.9%.

The mixed signals sent by the various data reported across the world during the week provide no clear direction in the financial markets and this explains the consolidative trading in the price of bitcoin.

Bitcoin (BTC/USD) Technical Analysis (the 60-min Chart)

Technically, the bitcoin price appears to be trading close to the median point of the late August-early September rally. This creates interesting trading opportunities as depicted using Fibonacci Retracements.

The bulls will be targeting short-term profits at around the 38.20% Fib level at $10,330 or slightly higher at $10,434. On the other hand, the bears will target profits at around the 61.80% Fib level at $9,939 or slightly higher at $10,044.

Bitcoin (BTC/USD) Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin appears to be trading in a consolidative symmetrical triangle formation. That triangle is nearing completion, which suggests that a major breakout in the bitcoin price could be close.

Therefore, the bulls will be targeting long-term profits at $10,994, $12,062 or higher at $13,452. On the other hand, $9,871, $9,291 or lower at 7,930 in case of a major bearish breakout in the current trend.

In summary, the price of bitcoin (BTC/USD) appears to be trading in a consolidative triangle formation both in the short-term and in the long-term. However, in both cases, a breakout appears to be fast approaching.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.