The bitcoin price on Thursday pulled back off the current weekly highs of about $38,440 to trade at around $36,646 following the latest round of US data. The BTC/USD had rallied after bottoming at $31,114 earlier in the week.
Bitcoin price continues to oscillate within a gently descending channel formation in the 60-min chart. It still remains pinned above the 100-hour moving average. Thursday’s pullback pushed bitcoin from overbought levels of the 14-hour RSI back to the normal trading zone.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, the BTC/USD is trading at the back of a busy period in the US market. The greenback continued to suffer as risk-on trading dominated the market. Bitcoin benefitted but Thursday’s inflation data pushed things slightly in favor of the greenback. This triggered the current pullback in the BTC/USD price.
The US consumer price index ex-food and energy outperformed the expected (YoY) change of 3.4% with 3.8%. The (MoM) equivalent also beat the expectation of 0.4% with a change of 0.7%. On the other hand, the leading CPI data for May outperformed the (MoM) expectation of 0.4% with 0.6%. The (YoY) growth jumped 5% beating the expected change of 4.7%.
The initial jobless claims came short of expectation with 376k versus 370k. This added some pressure to the USD. Traders will be looking forward to Friday’s preliminary consumer sentiment data.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the BTC/USD appears to be trading within a gently descending channel formation in the 60-min chart. This indicates a slight short-term bearish bias in the market sentiment. The bitcoin price has recently pulled back from overbought levels of the 14-hour RSI.
The bulls will be targeting short-term rebound profits at around $38,929 or higher to $42,235. On the other hand, the bears will look to extend the current pullback towards $34,027 or lower to $31,114.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the BTC/USD appears to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.
The bears will be looking to retain long-term control by targeting profits at around $28,797 or lower at $19,830. On the other hand, the bulls will target potential reversals at about $46,000 and $54,285.