Bitcoin Pulls Back Off Monthly Highs of $11,600 to Bottom at $11,200

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The price of bitcoin remained highly volatile on Friday as it pulled back off session highs of about $11,600 to bottom at around $11,200. The price of the pioneer cryptocurrency continues to trade in a highly volatile sideways channel in the 60-min chart.

It is currently pinned just above the 200-hour SMA line. The 100-hour SMA is a few levels above. Bitcoin continues to trade centrally in the 14-hour RSI despite the current volatility levels. The current pattern formation could continue through next week.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the price of bitcoin has recently benefited from the flaring up of new COVID-19 cases. The world’s most valuable cryptocurrency asset by market capitalization is quickly becoming a favorite among the millennials looking for alternative safe-haven investments. And with the US issuing stimulus package after stimulus package, bitcoin has become an important store of value for investors. As such, the BTC/USD price has recovered to trade within touching distance of the current yearly highs following the August plunge.

Nonetheless, the latest US data could provide the greenback with a source of strength against the BTC. This probably triggered the start of the highly volatile pattern formation. On Friday, the US retail sales control group posted a change of 1.4% for September compared to an expected change of 0.2%. General retail sales also impressed with 1.9% change (MoM) versus 0.7% expected while retail sales ex-autos beat 0.5% (MoM) with 1.5%. The Michigan Consumer Sentiment Index for October also outperformed 80.5 with 81.2.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the BTC/USD appears to be trading within a highly volatile sideways channel formation. This indicates a rapidly shifting market momentum between the bulls and the bears. 

The bulls will be targeting short-term rebound profits at around $11,448 or higher at $11.598. On the other hand, the bears will look to pounce for profits at around $11,213 or lower at $11,048.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the BTC/USD appears to be trading within a sharply ascending channel. This indicates a strong long-term bullish bias in the market sentiment. Bitcoin has now surged to trade closer to overbought levels of the 14-day RSI.

The bulls will be looking to ride the current upward momentum by targeting profits at around $12,473 or higher at $13,401. On the other hand, the bears will look to pounce for profits at around $10,006 or lower at $8,958.

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