Bitcoin Pulls Back Off 2-Week Highs To Trade Below $57,000

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The price of bitcoin on Monday pulled back from the current 2-week highs of about $59,105 to trade at around $56,929. The pioneer cryptocurrency continues to trade within an ascending trend formation in the 60-min chart.

Bitcoin is now pinned next to the 100-hour SMA. The 200-hour SMA is a few levels below. The latest pullback pushed the price of the BTC/USD closer to the oversold levels of the 14-hour RSI. This could trigger a short-term rebound towards the trend regression mean.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, bitcoin is trading ahead of a relatively busy period in the US market. On Monday, the US ISM Manufacturing PMI missed the expectation of 65 with 60.7. The Manufacturing Employment Index and the New orders index also came short of expectations with 55.1 and 64.3, respectively compared to 61.5 and 66.6. On the other hand, the Manufacturing Prices Paid beat 86.1 with 89.6 while the Markit Manufacturing PMI narrowly missed 60.6 with 60.5.

Next up, investors will be watching very closely at Wednesday’s ISM Services PMIs and the ADP Employment Change for April. The Services PMI is expected to improve slightly to 64.3 up from 63.7 in March while the ADP Employment Change is expected to jump to 815k jobs up from 517k. This could shape up for an interesting end to the week with the non-farm payroll data. Good figures could affect the price of bitcoin while disappointing data could boost the BTC/USD.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the BTC/USD appears to be trading within an ascending trend formation in the 60-min chart. The trend appears to enjoy a strong Pearson’s correlation coefficient, which means it could continue to the foreseeable future. This indicates a strong bullish bias in the market sentiment.

The bulls will be looking to ride the current trend by targeting profits at around $58,032 or higher at $59,105. On the other hand, the bears will target short-term profits at around $56,119 or lower at $54,906.

Bitcoin Price Technical Analysis (the Daily Chart)

Bitcoin appears to have bounced off the 100-day SMA to surge towards $60,000 in the daily chart. The BTC/USD still continues to trade within the ascending channel formation, which enjoys solid trendline support. 

The bulls will be looking to build on the recent rebound by targeting profits at around $64,115 or higher at $70,193. On the other hand, the bears will target pullbacks at around $49,728 or lower at $43,280.

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