(DAILY NOTION): A Volatile Week So Far For BTC/USD, Can the Bulls Gain Control Again?

Source: Yahoo Finance

It has been an eventful week for BTC/USD. After hitting a new all-time high past $57,000, the price has been experiencing pullbacks. However, the bulls have been hard at work to move past $50,000 and sustain its momentum. At present, the price stands at $49, 236.43 and has moved above its 10-day and 50-day Simple Moving Average (SMA).

Bullish buyers seem to be cheering as the bulls fight back, as reflected by the Relative Strength Index (RSI) that is currently on an upward trend and sits at 61, moving close to an overbought condition. At the time of writing, the Moving Average Convergence Divergence (MACD) is also indicating a bullish trend.

However, for the bulls to prove that they are here to stay, analyst Anil Panchal from FX Street believes that they have to overcome key resistance at $52,300, before moving onto $58,355, and $60,000. Meanwhile, key support levels for the bears are at $48,000, $46,000, and $46,000, which is the low from Feb 10. Thereafter, the bears will face support levels at $41,000, and $40,000.

What is the broader market’s sentiment towards the flagship cryptocurrency? On Feb 24, MicroStrategy, a business analytics and mobility platform, announced that it had purchased more than $1 billion worth of Bitcoin, with each coin worth $52,765 per coin.

Square, a merchant services and mobile payment platform, also has purchased Bitcoin, at an aggregate purchase price of $170 million, Coin Telegraph reported. As these institutional investors join Tesla in investing in Bitcoin, it could pave the way for the rest to make this leap.

Recently, Ark Investment Management’s founder and Chief Executive Officer, Cathie Wood, expressed her positive outlook for Bitcoin. However, not everyone is in the camp of the Bitcoin bulls. Bill Gates, the co-founder of Microsoft, cautions those with less money than Tesla’s Elon Musk, given Bitcoin’s volatility, as reported by Business Insider on Feb 23.

Once again, it is imperative that traders make investment decisions according to their portfolio size, risk appetite, and personal investment goals. These are wise principles that would ground a trader from being swept by a ‘Fear of Missing Out’ (FOMO) wave.

BTC/USD (as of Feb 25, 2021, 9.45 a.m., GMT +8) - $49, 236.43

FOLLOWME BTC/USD User Sentiment (as of Feb 25, 2021 at 10.20 a.m.)

Short – 65.78%

Long – 34.22%

#TESLA#