The price of bitcoin (BTC/USD) on Friday bounced off $8,230, a new 10-day low, to surge above $8,470 as bulls fought to take control. The bitcoin price has been on a downward movement since late last week amid increased bearish pressure in the market sentiment.
The pice of the pioneer cryptocurrency to the US dollar has now pulled off overbought levels of the RSI indicator in the 60-min chart after the latest pullback. This comes following a two-week rally that had propelled it to top $9,170.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, bitcoin is trading at the back of a relatively quiet period in the US market. This comes following two weeks of significant geopolitical activity between the US, China, and Iran. Nonetheless, the latest series of economic figures appear to have strengthened the dollar amid mixed market reaction. This is partly why bitcoin has pulled back this week.
The debate about whether bitcoin could one day replace cash continued on Friday Elon Musk, one of the leading personalities in the technology sector joined the bandwagon that refutes this possibility. However, more technology companies continue to embrace crypto including internet service providers, payments, telecoms and more. This boosts the general outlook of the cryptocurrency industry, in particular, the widely accepted bitcoin.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the price of bitcoin appears to have recently made a bearish reversal off a major bull-run. Bitcoin had rallied to top $9,176 but has since pulled back to bottom at $8,230. This shows an attempt by the bears to take short-term control of BTC/USD.
Therefore, the bears will be targeting short-term profits at around $8,230, $8,009 or lower at $7,743. On the other hand, the bulls will hope to trigger a major rebound by targeting profits at around $8,741, $8,971 or higher at $9,176.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the bitcoin price appears to be trading under intense bearish pressure within a descending channel. Bitcoin has recently bounced off the trendline support below as the bulls looked to initiate a rebound. However, the bears appear to be firmly in control.
Therefore, the bears will target long-term profits at around $7,763 or lower at $6,734. On the other hand, the bulls will look to build on the rebound process by targeting profits at around $9,635 or higher at $10,605.