(DAILY NOTION): BTC/USD: Bulls Are in For A Fight, Can They Emerge Victoriously?
Source: Yahoo Finance
The Bitcoin bears appear to have successfully taken over the reins from the bulls. On 26/2, the price dipped to $44,575.42. Although the bulls grappled with the bears and managed to bring the price up marginally, they could not sustain. The price has since moved sideways for a while, before the it started trending downwards. However, there appears to be signs of life among the bulls at the moment as the price has been moving upwards and presently stands at $45,823.23.
It is currently trading above its 50-day Simple Moving Average, that is depicted in purple. However, the Moving Average Convergence Divergence (MACD) is highlighting a close fight between the bulls and bears to take control. Meanwhile, the Relative Strength Index (RSI) stands at 72, close to an overbought territory, which indicates bullish Bitcoin buyers are taking advantage of the dip.
Data from Coin Market Cap shows that BTC/USD has dropped over 18% in the past seven days. However, the flagship cryptocurrency still holds that largest slice of the pie in terms of total market capitalisation, which stands at approximately 61% out of the current total market capitalisation of $1.41 trillion.
As the battle between the bulls and the bears gets heated up, they each must conquer key resistance and support levels to stake their claim. Analyst Anil Panchal from FX Street reports that resistance levels for the bulls lie at $46,500, $50,100 – 400 (which is the convergence of the previous support line from Jan 27 and the 100-bar SMA), and finally $55,000.
Meanwhile, for the bears, they will need to overcome support levels at $44,000 (the downside break of the 200-bar SMA), $43,100, $42,500, and $41,000. If the bears manage to overcome all of these hurdles, the next level that stands in their way would be $40,000.
Over the past year, it is undeniable that the flagship cryptocurrency has gone through a lot to make its mark in this manner. It has battled a position as a hedge against inflation that was previously dominated with gold, it had to overcome much resistance from the established players in the finance industry, such as Janet Yellen, and it had to field much speculation about its place in the future.
It has received help from the support of institutional investors such as Tesla and MicroStrategy, which has made the world pay even more attention to it. But, in recent days, it faces new competition from rising U.S. treasury yields. Last week, the 10-year U.S. treasury yields rose past 1.5%, for the first time since Feb 2020, leaving many to debate about what this means for the economy.
As reported by Coin Telegraph on Feb 26, Chad Steinglass, who is the head of trading at Cross Tower, a cryptocurrency trading platform, believes that ‘the interest rate volatility is a major source of market volatility, as the long end of the curve steepens, and the greenback is pushed lower.’ It also goes on to say that the recent volatility has taken its toll on both the cryptocurrency and equity markets.
Can Bitcoin be robust enough to withstand this latest hurdle in its way? Only time will tell, but let’s keep our eyes here.
BTC/USD (as of Mar 1, 2021, 9.25 a.m., GMT +8) - $45,823.23
FOLLOWME BTC/USD User Sentiment (as of Mar 1, 2021 at 10.10 a.m.)
Short – 59.55%
Long – 40.45%
Edited 01 Mar 2021, 10:14
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