The price of Bitcoin (BTC/USD) appears set for further declines towards the $11,000 key level going into next week as bearish pressure continues to build up.
And while it appears to be consolidating losses around the $11,250-$11,750 range, there is more selling pressure as buyers continue to take profits following a period of sustained rally.
The pioneer cryptocurrency appears to be trading within a downward trending wedge, which indicates a bearish bias in the short-term.
BTC/USD (Bitcoin) Fundamentals Overview
From a fundamental perspective, the price of bitcoin could be interpreted to be mirroring the economic events of this week in the US. After last week’s promise where the NFPs beat expectations of 160,000 jobs with 224,000, this week has failed to live up to the same expectations instead Fed Chair Jerome Powell hinting a case of uncertainty over the US economic growth.
Furthermore, the 4-Week Treasury Bill saw a decline in the average rate to around 2.135% down from 2.210% in the previous period. However, the 30-Year Bond improved significantly to 2.644% up from 2.607%.
The Producer Price Index for June was better than expectations with 1.7% versus a forecast fo 1.6%.
BTC/USD (Bitcoin) Technical Analysis (the 60-min Chart)
From a technical viewpoint, the price of Bitcoin (BTC/USD) appears to be facing strong resistance around the $11,750 level. This adds to the downward pressure already exerted by the trendline up top.
Going into next week, the bears will be more optimistic barring any significant fundamental data. They will be targeting profits at around $11,146 level while the bulls will hope for a breach of the resistance by targeting profits at around $12,103.
BTC/USD (Bitcoin) Technical Analysis (the Daily Chart)
In the daily chart, the price of Bitcoin appears to be on course to complete the formation of the XABCD pattern with a final bearish wave. This again affirms the downward pressure on the price of BTC/USD.
The bears will be targeting long-term profits at around $1$11,023 or lower at $10,114. On the other hand, the bulls will hope for an immediate rebound towards $12,363 or higher at $13,289.
In summary, the price of Bitcoin (BTC/USD) appears to be under intense downward pressure and this could push it to complete the current pullback unless a major economic event turns the tide.