Bitcoin Pulls Back to Trim Weekly Gains After Rebound

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The price of bitcoin (BTC/USD) on Wednesday pulled back to around the $54,200 level bringing a halt to a week-long rally. The price of the pioneer cryptocurrency has been trading within an ascending channel formation in the 60-min chart since bottoming at around $47,000 at the start of the week.

Bitcoin has now dropped to trade below the 200-hour SMA while the 100-hour SMA is several levels below. The recent pullback prevented bitcoin from crossing to overbought levels of the 14-hour RSI.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, bitcoin is trading at the back of a relatively busy period in the global financial markets. On Wednesday, the US Federal Reserve kept the base interest rate unchanged at 0.25%. Earlier in the week, the Bank of Japan also kept the interest rate pinned at -0.1%. Elsewhere, Australia’s Consumer Price Index for Q1 missed the (QoQ) expectation of 0.9% with a change of 0.6%. RBA’s Trimmed CPI also came short of the (QoQ) expectation of 0.5% with 0.3%. On the other hand, Canadian retail sales for February beat the expected (MoM) change of 4% with a change of 4.8%.

Generally, it looks like there was nothing too impressive in the market to drive investors towards income assets like stocks this week. It is also good to mention that US stocks closed mostly flat over the last couple of days amid unimpressive earnings results. This has played a role in driving the price of bitcoin up after sinking late last week. Also, news emerged that Elon Musk’s Tesla now sits on more than $2.5 billion worth of bitcoin up from the initial investment of $1.5 billion.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the price of bitcoin appears to be pinned within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

The bulls will target short-term rebound profits at around $55,278 or higher at $56,213. On the other hand, the bears will look to pounce on pullbacks at around $53,264 or lower at $52,299.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin appears to be trading within a sharply ascending channel formation. It has recently pulled back to halt the ascend but remains within the lower section of the channel. It has since rebounded to avoid crossing to the oversold levels of the 14-day RSI.

The bulls will target long-term profits at around $59,511 or higher at $64,861. On the other hand, the bears will look for pullbacks at around $49,000 or lower at $44,250. 

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