Source: Yahoo Finance
After a massive drop to $30, 568.82 at the start of the week, the BTC/USD bulls are fighting hard to move upwards but appear to have lost part of the strength it displayed at the start of the year. At the time of writing, it is at $33,763.83.
Analyst Anil Panchal from FX Street observed that BTC/USD dipped below the 10-day Simple Moving Average (SMA) yesterday. This fact, combined with the most bearish Moving Average Convergence Divergence (MACD) since early December, is good news for sellers. This is the fifth consecutive day that BTC/USD is showing a downtrend. A move past the key support line could open the possibility to $24,300.
However, analyst John Isige from FX Street believes that all hope is not lost for the BTC/USD bulls yet. If BTC/USD manages to push through the 50-day SMA, it will pave the way upwards to reach $42,000.
Nevertheless, the next few days would be key to determine if the bulls or the bears take the reins here. A closely watched situation is the U.S. political arena at the moment. There is an element of fear as people are beginning to wonder if more riots are on the way, especially in the light of President-Elect Joe Biden’s inauguration on Jan 20. Outgoing President Donald Trump has declared a state of emergency in the district of Columbia. Many are also waiting anxiously for the voting results from the U.S. House to determine if President Trump will be impeached for the second time, through a resolution recommending Vice President Mike Pence to invoke the 25th Amendment.
The Federal Reserve’s December Beige Book on Thursday, Jan 14 could provide traders with insights on the performance of regional economies at the end of 2020. The earnings reports from big banks this week would also be closely watched.
Meanwhile, in the U.S., the latest Job Openings and Labour Turnover Survey (JOLTS) report showed that the economy shed works in December for the first time in eight months. This was similarly reflected in the nonfarm payrolls report released last Friday.
An increase of risk-off sentiment would be act as fuel to take the BTC/USD bulls higher as an upcoming safe-haven favourite. Needless to say, this is an interesting space to watch so, let’s keep an eye here.
BTC/USD (as of Jan 13, 2021, 9.45 a.m., GMT +8) - $33.763.83
FOLLOWME BTC/USD User Sentiment (as of Jan 13, 2021 at 10.10 a.m.)
Short – 55.16%
Long – 44.84%