The price of Bitcoin (BTC/USD) popped yesterday to record new yearly highs of just over $5,000. Some traders expected a major pullback today, but to the surprise, the BTC/USD price went on to extend the gains above the $5,200 level before pulling back to hold firm just above the $5,100 level.
The price of the lead cryptocurrency alongside those of other top cryptos had stalled and failed to pull above the $4,200 level after spending most of the year below the $4,000 mark. However, it now appears to have established a new territory to trade within.
BTC/USD (Bitcoin) Fundamentals Overview
From a fundamental perspective, Bitcoin relies a lot on the general market sentiment towards cryptocurrencies, which is demonstrated by the number of top online retailers allowing cryptocurrency payments.
Over the last couple of weeks, there have been some top e-commerce companies that started accepting cryptocurrencies as a form of payment on their platforms, with bitcoin at the top of their list. This could be one of the reasons the crypto industry led by bitcoin has been building momentum towards the pop witnessed yesterday.
BTC/USD (Bitcoin) Technical Analysis (the 15-min Chart)
Technically, the price of Bitcoin appears to be trading within an ascending channel in the 15-min chart, which began to form after yesterday’s pop. And now, it is just hugging the $5,110 price level, which creates a couple of interesting trading opportunities for the bulls and the bears.
As such, the bulls will target profit opportunities at the current yearly high of about $5,206 while the bears will be hoping for a pullback towards the $5,000 level.
BTC/USD Technical Analysis (the Daily Chart)
In the daily chart, things appear clearer on a wider perspective with the price of Bitcoin now appearing to be creating a mirror to the sharp fall experienced in November last year. Currently, we are two-thirds on the way back to the first stop at around $5,670, which if achieved will be a 33% gain since popping yesterday.
As such, long-term BTC/USD (Bitcoin) bullish traders will be looking to pounce by targeting opportunities at $5,670 or high up at $6,500, which will complete the recovery. On the other hand, the bears will hope for an immediate pullback around the $4,200 level.
In summary, the price of Bitcoin (BTC/USD) appears to have established a new trading range above $5,000 and this could form the basis of its next bull-run.