BTC price still strong despite pullback to $14,800 lows
Bitcoin price is back above $15,400 after a slight dip saw it flop to lows of $14,895, with the downturn coming immediately after Pfizer announced a vaccine for COVID-19.
Yesterday, drugmaker Pfizer announced that its clinical trials for a coronavirus vaccine had shown 90% effectiveness.
Investors appeared to seize on the moment, with a jump in risk appetite sending the Dow Jones Industrial Average and the S&P 500 higher — closing at +2.95% and +1.17% respectively.
But the euphoric reaction seen on Wall Street has subsided significantly with confirmation that the vaccine will not be ready till 2021. The outlook appears to have jolted BTC bulls as price rebounded to a daily close at $15,333, leaving the digital asset just 0.95% off its daily open on Monday.
BTC/USD price short term outlook
From a technical perspective, Bitcoin appears to be trading within a bullish Ascending Triangle as shown in the daily chart below. In this continuation pattern, the price of an asset remains bound within the boundaries of an upsloping triangle.
Price bounces off the base of the triangle as seen when BTC touched lows of $14,351 on the 7th of November and $14,895 yesterday.
If a breakout to the top of the pattern happens, the price can rally as high as the height of the triangle. As long as BTC/USD remains above the lower boundary of the pattern, there are chances of touching highs of $16,600 if it breaks the immediate resistance line.
On the flip side, a drop below $15,000 to lows of $14,000 will come into play.
According to CryptoQuant CEO Ki-Young Ju, a key fundamental indicator shows BTC remains in “a strong buy zone”. This outlook is from a metric the data aggregation platform tracks called “All Exchange Inflow Mean”.
As per the indicator (referred to as ‘buy the dip’) a breakout in its 7-day moving average value has previously coincided with a major rebound in BTC/USD price, as shown in the chart below.
In this case, Bitcoin could still rally above $16K despite the last dip or subsequent pullback in the short term.
Bitcoin price is trading just above $15,427, around a region at which the prices have been trading for the past week.