Bitcoin Struggles Above $7,300 Amid a Lack of Directional Momentum

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Bitcoin is struggling to extend gainst above $7,300 as it continues to lack directional momentum. It is currently tagged to the 100-hour SMA.  The BTC/USD has rallied steadily since bottoming at around $3,858 in mid-March. However, it appeared to run out of steam the moment it crossed the $7,000 level. 

The price of the pioneer cryptocurrency continues to trade in a consolidative triangle formation. It also remains pegged in the middle of the 60-min 14-period RSI. A breakout could also be around the corner.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, bitcoin is trading at a time when global financial markets continue to face the wrath of the coronavirus pandemic. Stock prices have plunged, the US dollar Index has plummeted as global markets descend into a state of panic. The greenback has weakened significantly due to pressure and bitcoin has benefited from it. However, with few fundamentals fueling the BTC/USD rally, it appears to have run out of steam.

In the latest round of economic data, the greenback continued to draw weakness after the initial jobless claims missed the expectation of 5.25M with a whopping 6.606M. Earlier in the week, the NFIB Business Optimism Index came short of the expectation of 104.6 with 96.4. And on Friday, the Michigan Consumer Sentiment Index edged lower to 71 down from 89.1 in the previous period. The market was expecting a reading of 75. The Producer Price Index ex-food and energy was a significant spotlight. It beat the (YoY) expectation of 1.2% with 1.4% for March.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the BTC/USD appears to be trading in a consolidative bullish triangle formation. The bulls appear to be edging the battle in the market but only just. At this rate, a breakout could be around the corner amid a lack of directional momentum.

The bulls will be targeting short-term profits at around 47,678 or higher at $8,132. On the other hand, the bears will look to trigger a short-term reversal by targeting profits at around $6,979 or lower at $6,519.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the BTC/USD appears to be attempting a recovery. This comes after the price of the pioneer cryptocurrency bottomed at $3,858. Bitcoin could be on the verge of completing a XABCD reversal pattern after recovering from oversold levels. 

The bulls will look to extend the current gains towards $8,669 or higher at $9,961. On the other hand, the bears will target long-term profits at around $5,886, or lower at $4,428.

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