Source: Yahoo Finance
The BTC/USD is fighting hard to hold the fort, but it does not seem to be winning. The BTC/USD dipped nearly 15% in 24 hours, which has led to a staggering $170 billion loss in the cryptocurrency market value. It has also impacted altcoins, with both Ethereum and Litecoin experiencing a 20% loss. The already troubled XRP/USD has broken past its support at $0.30.
At the time of writing, the Moving Average Convergence Divergence (MACD) is bearish below the 50-bar Simple Moving Average (SMA). BTC/USD is currently at $35,452.82 with a Relative Strength Index (RSI) of 68.
Analyst Anil Panchal from FX Street opines that a pullback to an ascending trend line from Dec 29, at 30,320 at the moment, is imminent. However, the strong RSI and 200-bar SMA of 27,006 are fighting the case for the bulls. If the price breaks below 27,000, the bears will gain the upper hand to take the Dec 20 top around $24,300.
An interesting view comes from Pinchas Cohen of Investing.com, who opines that the BTC/USD price drop is a good thing for BTC/USD enthusiasts, in light of its recent acceleration upwards. With this decline, traders who want to cash out can do so to allow other traders to buy-in. However, is this a sentiment that is echoed by Bitcoin believers everywhere?
In the markets, hope fills the air as traders wait for the increased stimulus packages by the Biden administration. President-elect Joe Biden has hinted of massive packages, with the $2,000 checks for most Americans his top priority. However, it is estimated that these stimulus packages will add trillions to the U.S. Federal Debt. In the long run, the combined impact of this massive impact would take its toll on the USD, and lure funds away to gold, and perhaps even cryptocurrencies.
However, the temporary hype of the increased stimulus packages combined with a new beginning that awaits America with Joe Biden’s inauguration as the U.S. President on Jan 20 could increase the risk-on sentiment in the market. Will this prove to be the straw that broke the back of BTC/USD bulls? Let’s keep an eye here.
BTC/USD (as of Jan 12, 2021, 9.40 a.m., GMT +8) - $35,452.82
FOLLOWME BTC/USD User Sentiment (as of Jan 12, 2021 at 10.00 a.m.)
Short – 62.39%
Long – 37.61%