The price of bitcoin (BTC/USD) on Wednesday pulled back off session highs of about $40,829 to trade at around $38.725. This pullback came at the back of a significant rally in the price of the pioneer cryptocurrency. The BTC touched a multi-month low of $30,000 last week.
Bitcoin’s late pullback pushed it closer to the 100-hour moving average in the 60-min chart. It also prevented the BTC/USD from crossing to overbought levels of the 14-hour RSI. Bitcoin has now moved towards the center of the relative strength index indicator.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, bitcoin is trading at the back of a relatively busy period in the global financial markets. The crypto industry continues to attract more interest from the mainstream. This boosts its long-term outlook. On Tuesday, news emerged that Elon Musk, one of the biggest critics of bitcoin, was changing his views on bitcoin mining.
Musk has been very critical of the energy consumed to mine the pioneer cryptocurrency. It is partly why his company Tesla dumped its more than 1.5 billion BTC holdings. The sell-off triggered the latest crash in the price of BTC. But on Tuesday, when speaking to North Americal Bitcoin miners, he appeared to change his stance, which is probably why the BTC/USD bounced back.
The crypto industry continues to bear more branches with the introduction of DeFi projects a few years ago, Stablecoins, and now nun-fungible tokens that are created to monetize the digital economy. This will continue to boost the outlook of the industry and in particular the BTC.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, bitcoin appears to be trading within a consolidative triangle formation after breaking out of a descending channel. This indicates a significant shift in the market sentiment from bearish to bullish.
The bulls will be looking to extend the current rebound by targeting profits at around $41,457 or higher at $43,814. On the other hand, the bears will target immediate pullbacks at around $36,535 or lower at $34,321.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the BTC/USD appears to have recently plunged from an ascending pattern formation after completing a multiple-top reversal. The latest rebound just pushed the price of bitcoin back to the normal trading zone of the 14-day RSI.
The bears will be looking to retain long-term control of the BTC by targeting profits at around $30,000 or lower at $21,554. On the other hand, the bulls will look to extend the current rebound towards $48,596 or higher to $59,447.