BTC/USD (Bitcoin) Consolidates Gains Above $11,700 After Rebound

Free $100 Forex No-Deposit Bonus

The price of Bitcoin (BTC/USD) has rebounded to top $12,000 since the start of the month to mirror the inverse relationship with the greenback. As the US Dollar plunged after the rate cut and Trump’s announcement of trade tariffs on China, the pioneer cryptocurrency has benefited and rallied from below $10,000 to top $12,300.

However, the price BTC/USD (Bitcoin) has since pulled back to consolidate monthly gains just above $11,700 in a triangular formation. This could trigger the next breakout in the price of bitcoin.

BTC/USD (Bitcoin) Fundamentals Overview

From a fundamental perspective, the price of bitcoin (BTC/USD) is trading at the back of a difficult week for the greenback. US Dollar Index, which measures the strength of the greenback against a basket of six other currencies has plunged by nearly 2% since trading at just under 99.00 at the end of last month.

The price of Bitcoin has gained just by about the same margin despite growing global pressure for increased regulation. Generally, sentiment in the US capital markets remains weak and this is playing to the hands of cryptocurrency traders.

Trump’s decision to impose 10% tariffs on Chinse goods worth $300 billion could trigger an escalation of the trade war with China taking a similar measure. The 25 basis points cut in interest rates did not help the greenback either and this could continue to limit the US Dollar’s potential to recover against other currencies.

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

From a technical viewpoint, the price of bitcoin is trading in a consolidative triangular pattern following the recent rebound. This creates some compelling short-term trading opportunities.

The bulls will target profits at around $11,895 at the 61.80% Fib level while the bears will look at the 38.20% Fib level at $11,607 to pounce for profits. The 76.40% and 23.60% Fib levels also provide profit opportunities for the bulls and the bears respectively.

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

In the daily chart, the price of bitcoin still appears to be experiencing a significant bearish pressure in a more volatile channel. Following the recent rebound, it now appears to be facing strong trendline resistance around $12,082 which the bulls will target for profits. 

On the other hand, the bears will be more optimistic as the week comes to a close. They will target long-term profits at around $11,123 or lower at $9,860.

In summary, the price of bitcoin appears to be trading within a short-term consolidative pattern. However, the bears still retain control in the long-term as they target pullback profits going into next week.

Copyright © 2020. 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. 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.