Bitcoin Pulls Back Off Session Highs of $23,700 to Trim Weekly Gains

The bitcoin price on Friday pulled back off session highs of about $23,700 to trade at about $22,700, trimming this week’s gains. The pioneer cryptocurrency appears to be o a recovery trend despite the latest pullback.

Bitcoin seems to be pulling back to complete a XABCD double-top pattern formation that saw it top $24,200 on Wednesday. The BTC/USD has since pulled back to trade below the 100-hour moving average line as it edges closer to the oversold conditions of the 14-hour RSI.

Bitcoin Price Fundamentals Overview

The BTC/USD is trading at the back of several interest rate hikes across the globe. Under normal circumstances, a rate hike would be an indication of a booming market, which effectively results in higher market prices. However, investors continue to express caution when it comes to picking their investment vehicles with crypto, in particular, attracting a bearish sentiment. As a result, although bitcoin seems to be benefiting slightly from the recent rate hikes by the Bank of England, the European Central Bank, the Federal Reserve and the Bank of Canada, it is yet to establish a stable rally.

In the latest US economic data, the preliminary S&P Global Manufacturing PMI for July outperformed the expectations of 52 with 52.3. On the other hand, the Services PMI and the PMI Composite both came short of expectations. Thursday’s initial and continuing jobless claims data also failed to meet expectations adding pressure to the greenback. 

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the BTC/USD seems to be about to complete a XABCD double-top pattern formation signalling an end to the recent rally. This indicates that the market is yet to establish a stable sentiment bias.

Therefore, the bears will be looking to extend Friday’s late pullback towards $22,281 or lower to $21,731. On the other hand, the bulls will be targeting potential rebound profits at about $23,175, or higher at $23,702.

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.

Therefore, the bulls will be looking to ride the current rally toward $26,402 or higher to $30,635. On the other hand, the bears will be targeting long-term profits at about 418,894, or lower at $14,355.

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