The price of bitcoin (BTC/USD) on Friday bounced off 8-day lows to edge towards $7,200 in a consolidative pattern after a temporary plunge. The bitcoin price has been trading under considerable bearish pressure in recent trading sessions. However, the bulls appear to be determined to hold n to the $7,200 support level.
The bitcoin is now trading just below the 200-hour SMA and a few more pips below the 100-hour SMA. This supports the case of a short-term bearish bias in the market sentiment.
Bitcoin Price Fundamentals Overview
From a fundamental perspective, the price of bitcoin is trading amid a thin market activity, which is probably the reason behind the consolidative pattern formation. The Christmas day celebrations left the market with nothing to thrive on but a few economic data from the US.
On Monday, the US durable goods orders came out mixed and this pattern was replicated later on Thursday following the release of the latest round of US jobless claims data. In Europe, the German import price index for November beat expectations on both (MoM) and (YoY) basis while Japan’s all industry activity index and the economic index for October missed expectations.
From the perspective of the cryptocurrency market, it is still a tug-of-war between crypto enthusiasts and critics. This continues to send mixed signals in the market, which is why the price of bitcoin has been significantly volatile over the last few weeks.
Bitcoin Price Technical Analysis (the 60-min Chart)
Technically, the price of bitcoin appears to be trading under considerable bearish pressure in the 60-min chart. This indicates short-term bearish bias in the market sentiment. However, the bulls appear to have identified the $7,200 level as a key support base, which has resulted in a consolidative pattern formation.
Therefore, the bulls will be targeting short-term profits at around $7,264 just above the 38.20% Fib level or higher at $7,340 just below the 23.60% Fib level. On the other hand, the bears will be looking to pounce on short-term profits at around the 50% Fib level at $7,125 or lower at 61.80% Fib level at $7,000.
Bitcoin Price Technical Analysis (the Daily Chart)
In the daily chart, the price of bitcoin still appears to be trading within a consolidative diving triangle, which shows a long-term bearish bias in the market sentiment. The 100-day and the 200-day SMA lines are several pips above the current level of the bitcoin price, which indicates the existence of extreme bearish pressure.
Therefore, the bears will be targeting long-term profits at around $6,658, $5,875 or lower at $4,579. On the other hand, the bulls will hope for a major rebound towards $7,836 or higher at $8,741.