The price of BTC/USD (Bitcoin) on Friday added to Thursday’s gains rallying to trade above $8,130 but pulled back to end the weekly session on a negative territory. The price of the pioneer cryptocurrency had dropped to hit a weekly low of about $7,450 on early on Thursday before edging higher to close the session at around $7,950.
And on Friday, it added to those gains but failed to hit the key target of $8,200. But generally, the price of bitcoin continues to trade in a sideways movement, which appears to be forming a bullish consolidation.
BTC/USD (Bitcoin) Fundamentals Overview
The price of bitcoin relies on the general perspective of the cryptocurrency market. Despite being one of the most promising industries in the global financial markets, cryptocurrencies still have several doubters that require more than just promise to believe that they really have a future in the sphere of the financial market.
Recently, the cryptocurrency industry has been receiving a lot of positive developments with major companies embracing it. The most recent is the US telecommunications giant AT&T, which said it will accept bitcoin for bill payments while the likes of Facebook and Nike have also welcomed it.
This is positive for bitcoin and other cryptocurrencies, which explains the recent surge in crypto prices.
BTC/USD (Bitcoin) Technical Analysis (the 60-min Chart)
The price of Bitcoin made a major rebound on Thursday. It added to the gains on Friday taking it to the current level of about $8,070. This creates some compelling opportunities for the bulls and the bears to pounce.
The bulls will target profits at around $8,130 level in the short-term while the bears will be counting on another pullback towards the $8,000 level, or slightly lower at $7,998.
BTC/USD (Bitcoin) Technical Analysis (the Daily Chart)
In the daily chart, the price of Bitcoin appears to be consolidating in a triangle formation. This suggests that the BTC/USD could soon breakout, potentially downward given the recent rally.
However, on a wider perspective, the price of bitcoin is still well below last year’s highs, which suggests that there could be another level to the current rally. Therefore, the bulls will have multiple opportunities to target as demonstrated in the daily chart above.
On the other hand, the bears will hope that the BTC/USD suffers bullish exhaustion, which could trigger a major pullback. The bear case is also supported by the current price momentum, with bitcoin appearing to be on the edge of the overbought zone in the Relative Strength Index Indicator.
In summary, the price of bitcoin enjoys a strong bullish bias in the long-term, but the bears could also have a case looking at the BTC/USD current consolidative pattern.