BTC/USD (Bitcoin) Bounces Off New Monthly Lows After Pullback

Free $100 Forex No-Deposit Bonus

The price of Bitcoin (BTC/USD) bounced off new monthly lows of about $9,326 to trade above $9,500 after plunging on Wednesday. The latest bearish breakout comes following a period of consolidative triangular movement that started forming in the middle of the month.

But by extension, the price of bitcoin has been trading on a descending wedge for the better part of the last four weeks after making a major rebound between late July and early August. Bitcoin continues to enjoy strong support in the $9,300-$9,400 range and this could stand firm and trigger the next rebound in the price of the pioneer cryptocurrency.

BTC/USD (Bitcoin) Fundamentals Overview

From a fundamental perspective, the price of bitcoin has been slightly affected by this week’s resurgence of the US dollar after positivity returned to the market. Calm has resumed in the US market this week following two weeks of turbulence created by the US-China trade war and a rate cut at the start of the month.

Furthermore, economic data, though mixed has boosted the mood with Durable Goods orders beating expectations with a 2.1% change versus an expectation of 1.1% change on Monday. Dallas Fed Manufacturing Index also beat with 2.7 versus an expectation of -3.0. 

The 3-month Bill Auction Rate improved to 1.95% up from 1.90% while the 6-Month counterpart was flat at 1.84%.

Initial Jobless Claims for the week ending Aug 23 were in line with expectations at 215k, but Continuing Claims missed with 1.698M versus an expectation of 1.680M.

Preliminary Gross Domestic Product Price Index came in at 2.5% versus 2.4% forecast while the annualized rate was in line with expectations at 2.0%.

BTC/USD (Bitcoin) Technical Analysis (the 60-min Chart)

BTC/USD (Bitcoin) Bounces Off New Monthly Lows After Pullback

Technically, the price of Bitcoin appears to have recently bounced off oversold levels after Wednesday’s plunge. The decline pushed bitcoin price to restest the current trendline support at the intersection of the key support zone. This could trigger a major rebound in the price of bitcoin.

Therefore, the bulls will target profits at around $9.734, $9,931 and $10,268. On the other hand, the bears will hope for a continuation of the downward movement by targeting profits at around $9,326 and $9,114.

BTC/USD (Bitcoin) Technical Analysis (the Daily Chart)

BTC/USD (Bitcoin) Bounces Off New Monthly Lows After Pullback

In the daily chart, the price of Bitcoin appears to be trading in a consolidative bearish triangle with a flat base. This creates interesting long-term opportunities for traders.

The bulls will target long-term profits at $10,684, $11,355, $12,295 and $13,661. On the other hand, the bears will be targeting their long-term profits at $8,283, $7,379 and $6,161 going into next month.

In summary, the price of Bitcoin (BTC/USD) appears to be experiencing intense long-term bearish pressure but there is a strong support zone for both long-term and short-term traders.

Copyright © 2019. 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.