Bitcoin Pulls Back Off Monthly Highs Amid Strong Resistance at $9,700

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The price of bitcoin on Friday failed to rally towards $10,000 after facing strong resistance at the $9,700 level. This comes after a strong bull-run during the week. The price of the pioneer cryptocurrency made an upward breakout off a consolidative triangle formation earlier in the week to surge to $9,677. It has since pulled back to trade at $9,543 to the US dollar.

Bitcoin continues to trade centrally in the 14-hour RSI in the 60-min chart. It also remains several levels above the 100-hour and the 200-hour SMA lines. The next challenge will be to break through the $10,000 mark.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the BTC/USD is trading at the back of a relatively busy period in the US market. On Friday, the preliminary US Markit Manufacturing PMI for July missed the expectation of 51.5 with 51.3. The Markit Services PMI also came short of the expectation of 51 with 49.6 while the PMI composite improved from 47.9 to 50. On the other hand, new home sales for June outperformed the (MoM) expectation of 0.7M with 0.776M. New home sales change also beat 4% with 13.8%.

The price of bitcoin is also receiving a boost from the expected $2 trillion US stimulus package. While this will likely boost the strength of the US economy, it will also dilute the greenback further making bitcoin a more preferable option as a safe-haven investment. In addition, news broke out recently that the US regulator will greenlight bank crypto custody. This could boost investment in the pioneer crypto.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin appears to have recently made an upward breakout off a consolidative triangle in the 60-min chart. This indicates a change in the market sentiment from indecisive to a short-term bullish bias.

The bulls will be looking to extend the current short-term gains towards $9,677 or higher to $9,823. On the other hand, the bears will target short-term pullback profits at around $9,394 or lower at $9,201.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the BTC/USD appears to be facing strong resistance around the $10,000 level after recovering from the January-March plunge. Bitcoin is now trading closer to the 100% Fib level. It is also approaching overbought levels in the 14-day RSI.

The bulls will target long-term profits at around $10,522 or higher at $11,937. On the other hand, the bears will look to pounce for long-term pullback profits at around $7,959 or lower at $6,365.

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