The bitcoin price on Wednesday pulled back off the current weekly highs of about $35,000 to trade at around $33,267. The BTC/USD continues to trade in an ascending trend formation in the 60-min chart.
Wednesday’s pullback pushed the bitcoin price below the 100-hour moving average. It remains centrally in the 14-hour RSI. The current trend formation could continue through the end of the week.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, bitcoin and the cryptocurrency industry continue to gain traction amid growing interest from multinational corporations. However, it also faces significant hurdles as various governments continue to probe for potential weaknesses before granting their approval. China is the latest to shake the crypto world after its recent crackdown on cryptocurrency mining firms. The BTC/USD plunged after news broke the Asian country is tightening the noose on crypto miners.
The cryptocurrency industry is also benefitting from rapid innovation in the market with the emergence of non-fungible tokens and stablecoins leading the next breakout. Several sectors are adapting their systems to crypto to reduce transaction costs and improve security. The future looks bright but there are bumps on the way that will cause some volatility.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, bitcoin appears to have bounced off new yearly lows to surge above $35,000. However, it recently pulled back after facing resistance from the 100-hour moving average. It is now pinned just below the 38.20% fib level on the way up.
The bulls will look to extend the current recovery towards 50% and 61.80% fib levels at $35,095 and $36,542, respectively. On the other hand, the bears will look to pounce for profits at around the 23.60% fib level at $31,778 or lower at $30,290.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, bitcoin appears to be trading within a descending channel formation. This indicates a strong long-term bearish bias in the market sentiment. Bitcoin moved closer to oversold conditions before making the latest rebound.
The bulls will be looking to build on the attempted rebound by targeting profits at around $39,776 or higher at $46,000. On the other hand, the bears will target extended pullbacks at around $26,821 or lower at $19,830.