Bitcoin Pulls Back Off Weekly Highs After the US Non-Farm Payrolls

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The price of bitcoin BTC/USD on Friday pulled back off the current weekly highs of about $11,931 to trade at around $11,771 after the US NFPs. The price of the pioneer cryptocurrency is recovering after plunging sharply late last week. 

This week it surged to trade well above the 76.40% Fib level before pulling back on Friday to trade just adjacent to it. It remains several levels above the 61.80% Fib level and the 100-hour SMA. Friday’s pullback pushed it off overbought levels of the 14-hour RSI in the 60-min chart.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, bitcoin has benefited significantly from the COVID-19 driven economic crash. The global markets have experienced adverse effects amid country lockdowns, travel restrictions, and reduced business activity. Bitcoin is quickly becoming a safe-haven investment for crypto enthusiasts and this has boosted its price gain over the last four months. The bitcoin halving that took place a few months ago also played its part in making the pioneer cryptocurrency more scarce relative to fiat currencies like the USD.

The greenback, on the other hand, received a short-term boost on Friday after the latest round of US non-farm payrolls. The US tertiary job market created 1.763 million jobs in July compared to an expectation of 1.6 million. Average hourly earnings grew 4.8% (YoY) versus an expectation of 4.2% while the unemployment rate of 10.2% was better than the expected rate of 10.5%. The US Labor force participation rate for the month also outperformed 61.1% with 61.4%.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin appears to be experiencing a short-term bullish pressure in the 60-min chart. However, the pressure appears to dissipate slightly on Friday after it pulled back to trade around the 76.40% Fib level.

The bulls will be targeting short-term profits at around $11,931 or higher at 100% Fib level at $12,138. On the other hand, the bears will look to pounce for profits at 50% and 61.80% Fib levels at $11,528 and $11,338, respectively. 

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin BTC/USD appears to have recently spiked after a consolidative triangle formation. Bitcoin is now facing strong trendline resistance just below the $12,000 level. It remains in the overbought territory of the 14-day RSI.

The bulls will be looking to extend the current long-term gains towards $12,821 or higher to $13,894. On the other hand, the bears will target long-term pullback profits at around $10,730 or lower at $9,414.

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