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(DAILY NOTION): Are The BTC/USD Bears Showing Up? Next Mover: Upcoming PMI Data from U.S., Japan, U.K.

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(DAILY NOTION): Are The BTC/USD Bears Showing Up? Next Mover: Upcoming PMI Data from U.S., Japan, U.K.

Source: Yahoo Finance

BTC/USD experienced a sharp upwards traction from $35,626.40 to $36,649.07. This was immediately followed by a sharp decline to the price at present time, which is $35, 984.65. The Relative Strength Index (RSI) also dipped from an overbought condition of 81 to present a reading of 41.

Analyst Anil Panchal from FX Street opines that the bulls upwards run is currently being challenged by a bearish Moving Average Convergence Divergence (MACD) and short-term resistance lines. Should the 21-day Simple Moving Average (SMA) of $34,590 be tested, a path can then be opened up towards $30,209 and $30,000. A further breakthrough past the $30,000 may lead to BTC/USD hitting $29,700 and $26,830.

The key event on the calendar for this week would be President-elect Joe Biden’s inauguration, which will be heavily guarded. Investors are turning cautious after the unveiling of his $1.9 trillion stimulus package, as the sense of euphoria is being replaced with questions of how much can make it through Congress, given the slim majority of the Democrat in the Congress. How would this also take a toll on an already debt-stricken U.S? As of October 2020, the U.S. debt has already mounted up to $27 trillion.

Traders would also be keeping an eye out for Purchasing Managers’ Index (PMI) data out from the U.S., U.K., and Japan this Friday.

The World Health Organisation has also issued a grim warning of the worst of the Covid-19 pandemic is ahead of us. The death toll has now passed 2 million, as of Friday. This bleak news, coupled with lacklustre U.S retail sales report from December, could trigger a fresh risk-off sentiment which would benefit BTC/USD.

BTC/USD (as of Jan 18, 2021, 10 a.m., GMT +8) - $35,984.65

FOLLOWME BTC/USD User Sentiment (as of Jan 18, 2021 at 10.25 a.m.)

Short – 61.28%

Long – 31.72%

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