The price of bitcoin (BTC/USD) is now trading just below $7,400 after wiping out all the gains it made on Tuesday following a sharp spike. The bitcoin price now appears to be trading in a consolidative triangle pattern with a long-term bearish pressure and a short-term bullish bias.
The price of the pioneer cryptocurrency is now tightly pegged between the 100-hour and the 200-hour SMA lines, which suggests that a major breakout could be on the horizon.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, the price of bitcoin has been affected by some adverse developments in the industry over the last few weeks. China, which announced a cryptocurrency project of its own where it plans to launch national crypto shut more than 300 crypto-exchanges and altcoins triggering a mass sell-off in the market.
The industry also continues to struggle with internet crime as hackers and scammers defraud unsuspectingly traders. While this may not be a problem of bitcoin, the systems used to facilitate crypto trading continue to be exposed.
Traders are also factoring in the latest round of economic data that saw the US SIM Manufacturing and non-Manufacturing PMIs miss expectations of 49.2 and 54.5 with 48.1 and 53.9 respectively. And on Friday, the US non-farm payrolls smashed Jobs expectations of 180k with 266k while wage growth for November soared 3.1% (YoY) versus 3.0% expected.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the price of bitcoin appears to be experiencing a substantial bearish pressure in the market sentiment as it continues to trade within a descending wedge. The BTC/USD recently attempted a major rebound leading to the formation of a consolidative bullish triangle.
Going into next week, the bears will be targeting short-term profits at around $7,160 or lower at $6,900. On the other hand, the bulls will hope that the trendline resistance is breached by targeting profits at around $7,600 or higher at $7,870.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the bitcoin price appears to be experiencing intense bearish pressure in a sharply descending wedge. The price of the pioneer crypto appears to be targeting $4,000 for the next major bottom.
Therefore, the bears will be targeting long-term profits at around $6,706, $5,875 or lower at $4,960 going into the tail-end of the year. On the other hand, the bulls will hope for a reversal that could take the bitcoin price towards $8.188, $8,990 or higher at $9,843.