Bitcoin Bulls Look to Consolidate Gains Around $9,800 as Bears Retreat

By February 7, 2020 Bitcoin Business
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The price of bitcoin (BTC/USD) continues to trade rangebound $9,750-$9,850 with the bulls looking to consolidate weekly gains around $9,800. Bitcoin rallied over the last two days rising from $9,083 to top $9,855. However, it has since found strong resistance around $9,800-$9,850 resulting in a consolidative sideways movement.

The price of the pioneer cryptocurrency is now several pips above the 100-hour and the 200-hour SMA lines. It has since ventured towards the overbought levels of the RSI indicator.

Bitcoin Price Fundamentals Overview

From a fundamental perspective, bitcoin is trading at the back of a busy period in the global markets. The Week kicked off on Sunday with China’s announcement of a stimulus package that will be used to curb the effects of the coronavirus on the economy. This boosted global equities prices and bitcoin capitalized on the renewed market optimism.

During the week, several economic figures also came through. In the US, the ISM Manufacturing and Markit PMIs beat expectations. The ISM non-Manufacturing also impressed but other measures of this category disappointed including prices paid, employment index and new orders index. On Thursday, initial jobless claims beat the expectation of 215k with 202k but continuing claims came in higher than expected.

On Friday, traders will be looking forward to the January non-farm payrolls to weigh their expectations on economic performance for the coming weeks. The US unemployment rate and wage growth for the last month will also be out.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the bitcoin price appears to be experiencing a short-term bullish bias in the market sentiment. This comes at the back of a 7-day sideways movement that began towards the end of last month. The price of bitcoin has been trading in an ascending channel over the last two days and this could continue through next week.

Therefore, the bulls will be targeting short-term profits at around $9,855 or higher at $9,945. On the other hand, the bears will look to pounce by targeting profits at around $9,674 or lower at $9,569.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, bitcoin appears to have recently made a short-term bullish reversal in a consolidative triangle formation. Bitcoin traded in a bear market from June last year before bottoming in December to spark the reversal. The current reversal has pushed the price of bitcoin towards overbought levels of the RSI indicator in the daily chart.

Therefore, the bears will be targeting pullback profits at around $8,946, $7,905, or lower at $6,885. On the other hand, the bulls will look to extend YTD gains towards $10,594, $11,502, or higher at $12,387.

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