BTC/USD (Bitcoin) Targets a Retest of Weekly Highs After Rebound

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The price of Bitcoin (BTC/USD) continues to face strong resistance around the $10,700 level and in recent trading sessions, it has pushed below $10,400. The pioneer cryptocurrency is now trading within a diving channel after completing the second breakout in the space of seven days.

Bitcoin entered the previous bullish wedge before breaking out in a bearish slump late last week. And now, it appears to have taken a bearish outlook in the short-term horizon with potential support found at around $9,882.

BTC/USD (Bitcoin) Fundamentals Overview

From a fundamental perspective, the price of bitcoin has rallied this month primarily following the softening of Trump’s stance on trade tariffs. The decline since last week has been driven by a series of disappointing economic figures led by the non-farm payrolls, which missed expectations with 130k jobs.

President Trump’s decision to postpone increasing trade tariffs on China to mid-October has been received positively thereby giving investors some much-needed optimism going into Friday.

And in Europe, there is some light at the end of the tunnel for those against a hard Brexit and this is promising for the Uk economy. The Pound Sterling has certainly ridden on this renewed market optimism and overall, it gives all traders including those trading in bitcoin a reason to look forward with some bullish expectations.

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

Technically, the price of bitcoin appears to have recently touched the overbought levels of the Relative Strength Index Indicator. It has since pulled back depicted with the BTC/USD finding strong trendline resistance that looks et to trigger a pullback.

Therefore, going into Friday, the bears will be targeting short-term profits at the next immediate support level at $10,059 or lower at the trendline support at $9,882. On the other hand, the bulls will hope that the current recovery continues towards the current weekly highs of about $10,555 or higher at around $10,761.

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

In the daily chart, the price of bitcoin appears to be trading in a consolidative triangle formation, which suggests that it could soon experience a major breakout. And judging by the formation of the triangle, the bears appear to be winning the battle, which could push bitcoin into a bearish breakout.

Therefore, from a long-term time frame, the bears will be looking to pounce on profits at around $9,871, $9,291, or lower at $7,930. On the other hand, the bulls will continue to believe they can turn the tide in their favor by targeting profits at around $10,994, $12,062 or higher at $13,452.

In summary, the price of bitcoin appears to be trading under significant bearish pressure in the short-term, but in the long-term, both the bulls and the bears appear to be evenly matched amid a consolidative triangle formation.

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