The price of bitcoin on Thursday pulled back off the 100-hour SMA to trim session gains. The BTC/USD plunged on Wednesday to trade at a new 15-week low of $30,000. Bitcoin continues to trade within a descending regression trend in the 60-min chart.
It has now dropped below the 100-hour and the 200-hour SMA lines. The price of the pioneer cryptocurrency has since recovered from oversold levels of the 14-hour RSI to trade centrally in the strength index indicator.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, bitcoin is trading at the back of a busy period in the global cryptocurrency market. The last two weeks have been characterized by increased crypto sell-off amid comments by Tesla CEO Elon Musk. Musk hinted last week that his company had sold or was going to sell all of its crypto holdings weeks after reducing its stake. Bitcoin, in particular, has faced criticism for being a high energy consumption asset.
Nonetheless, this pullback could yet prove to be an opportunity to invest in crypto with more mainstream companies still joining the market. The Non-fungible token wave is also playing its part by bringing in new players to the crypto market. This has helped to widen the entire crypto market. It will boost crypto prices in the future. Bitcoin is also suffering from the latest Fed minutes which hinted at a potential rate hike in the near future.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the bitcoin appears to have recently bounced back from a sharp decline in the 60-min chart. The BTC/USD continues to trade within a descending channel formation. This indicates a short-term bearish bias in the market sentiment.
The bears will be looking to extend the current bearish run by targeting profits at around $38,898 or lower at $36,896. On the other hand, the bulls will look to pounce for profits at around $42,103 or higher at $44,054.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the BTC/USD appears to have recently recovered from the oversold levels of the 14-day RSI to trade within the normal trading zone. This indicates that the bulls are fighting back to retake control of the price of the pioneer cryptocurrency.
They will be targeting long-term profits at around $46,140 or higher at $52,015. On the other hand, the bears will look to extend the current declines towards $35,259 or lower to $30,000.