Bitcoin Rejects a Retest of Weekly Highs After Rebound

The bitcoin price on Thursday spiked to trade at about $40,340 before pulling back to reject a retest of the current weekly highs of $40,800. The price of the pioneer cryptocurrency continues to trade within an ascending channel formation in the 60-min chart.

The BTC/USD found support off the 100-hour moving average after falling to trade at about $39,300. However, the late pullback prevented the bitcoin price from advancing to the overbought conditions of the 14-hour RSI.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, the pioneer cryptocurrency is trading at the back of a relatively busy period in the market. The current rally is fueled by a notable whale activity after institutional investors swooped in to take advantage of the recent dip. Data indicates that bitcoin whales bought 40,000 bitcoins worth $1.6 billion, resulting in a significant surge in the price. Moreover, bitcoin is also riding some positive sentiment after leading investment bank, Goldman Sachs debuted bitcoin-backed loans.

In the US, the BTC/USD is also benefitting from the latest round of economic data after the preliminary GDP data for Q1 missed the expected change of 1.1% with an annualised change of -1.4%. The core personal consumption expenditure data also failed to match expectations, further weakening the greenback.

Bitcoin Price Technical Analysis (the 60-min Chart)

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

Therefore, the bulls will be looking to ride the current rally by targeting profits at about $40,335, or higher at $40,975. On the other hand, the bears will be looking to pounce on potential pullback profits at about $39,161, or lower at $38,585.

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.

Therefore, the bears will be looking to retain long-term control of the bitcoin price by targeting profits at about $37,513, or lower at $35,105. On the other hand, the bulls will be targeting long-term reversals at about $42,074, or higher at $44,456.

Copyright © 2022. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.