(DAILY NOTION): BTC/USD: Bulls Are Nowhere to Be Seen as The Price Nosedives Further

The Bitcoin bulls are still catching a break and recovering after hitting a high of 52,426.85 during the middle of the week. At the time of writing, the price is at $47,985.73. The Relative Strength Index has taken a dive from 81 (an overbought condition) to its present 43. Meanwhile, the Moving Average Convergence Divergence (MACD) is pointing towards a bearish trend. BTC/USD is also trading below its 50-day Simple Moving Average (SMA).  

Source: Yahoo Finance

The flagship cryptocurrency has been making headlines this year, with its incredible rise, against all odds. However, what do the Bitcoin bulls have in store next? Analyst John Isige from FX Street reports that Bitcoin’s downward movement was due to a formation of a double-top pattern when it broke past $52,000. For the bulls to recover their throne, they must move up above $50,000 once again before aiming for $58,000. Meanwhile, the bears seem to be targeting $43,000, as they have overcome support at 100-SMA on the four-hour chart (slightly above $50,000), which was earlier highlighted by Isige.

At the time of writing, the total market capitalisation of Bitcoin is 60.9% out of the total global cryptocurrency market capitalisation of $1.43 trillion, data from Coin Market Cap shows. Over the past 24 hours, Bitcoin’s market cap has dipped 7.67%. For comparison, the overall cryptocurrency market capitalisation has fallen 8.78% over the past 24 hours, according to Coin Market Cap.

Although the bulls appear to be in for a fight, it does not seem that Bitcoin has fallen out of favour yet. A report from BTC Peers on Mar 4, reported that there was a 2% dip in the number of Bitcoin on exchanges throughout Feb 23 and Mar 23. This was observed from data by Glassnode, a blockchain data and intelligence provider, who also believes that this could be an indication that the accumulation of Bitcoin has resumed.

Needless to say, the bulls must once again overcome the bears to show that they are here to stay for a long while.

BTC/USD (as of Mar 5, 2021, 9.20 a.m., GMT +8) - $47, 985.73

FOLLOWME BTC/USD User Sentiment (as of Mar 5, 2021 at 10.00 a.m.)

Short – 60.31%

Long – 39.69%