Bitcoin Pulls Back Off $42k As US Treasury Sanctions Russian Crypto Miners

The bitcoin price on Wednesday pulled back off the new 8-day highs of about $42,100 to trade below $4,500 before mounting a slight recovery late on. The pioneer cryptocurrency continues to trade within an ascending channel formation in the 60-min chart.

As a result, the BTC/USD remains a few levels above the 100-hour moving average line. Wednesday’s late rebound prevented the bitcoin price from falling closer to the oversold conditions of the 14-hour RSI.

Bitcoin Price Fundamentals Overview

Bitcoin and the crypto sector, in general, continue to exhibit phases of volatility amid continuing global endemic outbreaks and Russia’s invasion of Ukraine. Moreover, the industry has faced some autocatalysts recently after billions of dollars were lost to hackers during the first quarter. On Wednesday, the US Treasury placed sanctions on Russian crypto miners, further adding pressure to the bitcoin price.

However, with the US market lacking significant data to report and boost the greenback against bitcoin, the BTC/USD mounted a significant rally, before pulling back in the afternoon session. 

Bitcoin also continues to benefit from the continued influx of venture capital funding in the crypto sector amid the NFT and metaverse craze. Some startups like Stacks have even created scaling protocols to bring decentralised apps to the world’s most popular cryptocurrency.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the BTC/USD seems to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to ride the current rally towards $42,075 or higher to $42,641. On the other hand, the bears will be targeting short-term profits at about $40,918, or lower at $40,306.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the bitcoin price seems to be trading within a gently ascending channel formation. This indicates a slight long-term bullish bias in the market sentiment. The BTC/USD recently pulled back to find the trendline support, which triggered a rebound.

Therefore, the bulls will be targeting long-term profits at about $43,837, or higher at $46,803. On the other hand, the bears will look to pounce for potential declines at about $39,091, or lower at $36,294.

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