The price of Bitcoin (BTC/USD) bounced off new weekly lows on Thursday after hitting the crucial Fib level at 61.80% to edge higher above $10,200. It is now pegged around the 50% Fib level and is targeting 38.20% for the next profit opportunity for the bulls.
Bitcoin continues to trade in a consolidative triangular pattern after the massive plunge it experienced earlier this month. The attempted recovery last week faced exhaustion after hitting the crucial $10,000, which triggered the short-term rebound that culminated with a bottom at around $10,040.
BTC/USD (Bitcoin) Fundamentals Overview
From a fundamental perspective, the price of bitcoin is trading at the back of a quiet week with less activity. In the US, the 3-month and the 6-month auction rates fell to 1.90% and 1.84% respectively from the previous week’s 1.96% and 1.89%.
The Redbook Index came in at -1.7% for last month on (MoM) basis up from -2.0% in the previous period while the (YoY) figure came in at 4.9% up from 4.4% in the previous period.
Existing home sales for July came in at 5.42M beating expectations of 5.39M posting a change of 2.5%, in line with expectations. On the other hand, the Federal Reserve clarified that the decision to cut rates at the start of the month had nothing to do with getting ready for a potential quantitative easing stimulus package.
But the US-China trade war continues to put the US economy at a compromising position as China looks to exert the same measures on US goods.
BTC/USD (Bitcoin) Technical Analysis (the 60-min Chart)
Technically, the price of bitcoin appears to be trading in a consolidative pattern formation around the $10,200 level. The price of the pioneer cryptocurrency recently bounced off the trendline support at $10,040 and now targets the Fib key level 38.20% at $10,368 for bullish profits.
The bulls will be looking at this level going into next week or higher at the 24.60% Fib level at $10,694. On the other hand, the bears will look to pounce on short-term profits at around the Fib level 61.80% at $10,040 or lower at 76.40% at $9,825.
BTC/USD (Bitcoin) Technical Analysis (the Daily Chart)
In the daily chart, the price of bitcoin appears to be trading within a descending channel, that is forming off a consolidative triangle pattern. The BTC/USD is currently finding strong support from the trendline at about $10,200, which creates some interesting opportunities for both the bulls and the bears.
The bulls will target profits at around $10,895 while the bears will look to pounce by targeting long-term profits at around $9,487 or lower at $8,745.
In summary, the price of bitcoin appears to be going through a short-term consolidative phase, but in the long-term, it is still experiencing strong bearish pressure.