(DAILY NOTION): BTC/USD Bulls Take a Breather, Next Mover: Nonfarm Payrolls, Biden Stimulus Package

Source: Yahoo Finance

After a steady increase in price throughout this week, BTC/USD has taken a dip late last night and is presently at $37,094.70. The Moving Average Convergence Divergence (MACD) is signalling a bearish trend. BTC/USD is also struggling to keep above the 50-day moving average (MA), which is indicated by the purple line; although it was gained some momentum right now to hover above it. The Relative Strength Index (RSI) has dipped from an overbought condition of 76, to its present 41. There does not seem to be a definite trend spotted from BTC/USD’s price movement at the moment, and the market appears to be reflecting this with a ‘watch and see’ sentiment.

Although the total market capitalisation of decentralised finance has reached a new high of $32.8 billion, as reported by Coin Desk, an interesting trend has also been observed on the CoinDesk 20 exchange volume data: Altcoins, especially Ethereum, is capturing a larger share of trading volume of late. Ethereum has since broken through the $1,600 level and is garnering its share of the spotlight.

So, the question now is: what lies ahead for Bitcoin, the flagship cryptocurrency? Analyst Anil Panchal of FX Street believes that the bulls have not played their trump card yet, and there could still be upwards momentum ahead. Key resistance levels lie at $38,000, $41,000, and $48,000. Meanwhile, key support levels are at $30,000 and $27,780.

In a recent statement, Reserve Bank of Australia’s (RBA) Assistant Governor for Financial Systems, Michelle Bullock, remarked that Bitcoin is ‘not a payment instrument or real money.’ She joins several other financial figureheads such as Janet Yellen, the U.S. Treasury Secretary, who has expressed similar pessimistic views over cryptocurrencies. However, despite all of that, one thing’s for certain: traders are open to alternatives of traditional investment instrument; and if the recent GameStop frenzy has taught us, anything can happen to shake traditions; even on Wall Street.

In the meantime, near market movers that could affect the overall risk sentiment in the market would be the release of nonfarm payrolls and the progress of the Biden Stimulus Package. The U.S. House of Representatives has approved a budget resolution which would allow the Democrats to progress with the $1.9 trillion relief plan, without Republican support. As risk-on sentiment in the market increases with positive update in these two areas, it could temporarily lure traders away from cryptocurrencies and back to the more traditional investment vehicles.

BTC/USD (as of Feb 5, 2021, 8.45 a.m., GMT +8) - $37,094.70

FOLLOWME BTC/USD User Sentiment (as of Feb 5, 2021 at 9.15 a.m.)

Short – 69.42%

Long – 30.58%

#BidenStimulus#