BTC/USD (Bitcoin) Flirts WIth $10,000 After Extending Weekly Gains

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The price of Bitcoin (BTC/USD) extended the current weekly gains on Friday to trade at $9,933, the highest price the pioneer cryptocurrency has traded since May last year. Bitcoin has been on a rally since bottoming on June 10, following the recent pullback.

The latest rally also triggered what appears like a channel breakout with the BTC/USD now trading outside the tight sideways channel that spanned over a month. This week, the price of Bitcoin has rallied by nearly $1,000.

BTC/USD (Bitcoin) Fundamentals Overview

From a fundamental perspective, the price of Bitcoin us trading at the back of what has been a major week for the cryptocurrency industry. Social media giant Facebook launched Libra Coin a global cryptocurrency that seeks to decentralize payments, and especially reach out to the underbanked in third-world countries.

Facebook’s Libra Coin has also received backing from the world’s leading financial payment companies including PayPal, MasterCard, and Visa among others and this is seen as a positive development for the overall cryptocurrency market.

This has boosted sentiment surrounding cryptocurrencies with most altcoins registering major gains to add to what has been a good 3-months period.

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

From a technical viewpoint, the price of Bitcoin has advanced over the last few days to trade above $9,900 for the first time in over a year. This could indicate a breakthrough for a new trading range going into the tail-end of this month.

As such, the bulls will target profits at around $10,267 with the hope that the BTC/USD can break through the key resistance level of $10,000. On the other hand, the bears will be cautious of the recent really and will look for pullbacks towards $9,490.

The RSI Indicator also shows that Bitcoin might already be overbought, suggesting an imminent pullback, which could excite the bears.

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

In the daily chart, the price of Bitcoin appears to be trading well within touching distance of the 2018 resistance at $11,572. This could be far-fetched but not impossible as illustrated in the chart.

The bears can also target a major pullback towards $9,033 with both positions realizable within the next few weeks.

In summary, the price of Bitcoin is riding on this week’s news that more technology giants are entering the cryptocurrency market, which again gives a positive image to the industry.

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