The bitcoin price has this week recovered significantly from last week’s plunge. Bitcoin is now trading at around the 61.80% Fib level. The price of the pioneer cryptocurrency had recovered to reach the 76.40% fib level at $6,984 on Friday morning. However, it pulled back late on amid increased fears on the potential impact of the coronavirus outbreak.
The latest pullback pushed the price of bitcoin off overbought levels back to the normal trading zone of the 60-min RSI. The 100-hour SMA remains above the 200-hour SMA as the bulls retain control.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, the BTC/USD is trading at the back of a significant period in the US market. The coronavirus (COVID-19) continues to wreak havoc on the global scene and this is affecting financial markets. As such, investors appear to be retreating towards the safe-haven greenback, which has seen the USD strengthen against rival currencies. The same applies to bitcoin and other cryptocurrencies when traded against the US dollar.
Sunday’s 100 basis points worth fo rate cut boosted the USD against several currencies. However, the rest of the economic data released during the week has been far from convincing. This explains why bitcoin has gained ground on the greenback this week. The latest report on the NY StateEmpire Manufacturing Index for March missed expectations by a landslide. Retail sales also disappointed while the initial jobless claims came out more than expected.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the bitcoin price appears to be trading ina relatively bullish curve. The price of the pioneer cryptocurrency has recently made an attempt to recover but now faces strong resistance around the $7,000 level. This coincides with the 76.40% Fib level.
Therefore, the bears will be targeting pullback profits at around 50% Fib level at $5,910 or lower at 38.20% Fib level at $5,437. On the other hand, the bulls will target the 76.40% Fib at $6,984 or higher at $7,385.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the BTC/USD appears to have recently bottomed at a new 12-month low of about $3,867. This rebound has pushed the bitcoin price back to the normal trading zone of the daily RSI off the oversold levels.
The bulls will be targeting long-term profits at around $7,808 or higher at $9,468. On the other hand, the bears will look to retain control of the price of bitcoin by targeting profits at around $5,031 or lower at $3,867.