(DAILY NOTION): BTC/USD: The Bulls Have Resurfaced, How Long Will They Stay?

Over the weekend, the bulls have garnered the strength to rise upwards. Despite facing resistance from the bears, it managed to overcome these obstacles. After hitting $51,298.15, the bulls have pulled back to take a breather. At the time of writing, BTC/USD is at $50,854.72.

However, it is trading above its 50-day Simple Moving Average (SMA) and the Moving Average Convergence Divergence (MACD) is reflecting a bullish trend. The Relative Strength Index (RSI) is reaching an overbought condition and currently stands at 72 after rising upwards from 15, a reflection of the buyers’ appetite in the market.

Source: Yahoo Finance

So, what lies ahead for the Bitcoin bulls? According to analyst Anil Panchal from FX Street, that would be dependent on bulls’ success to overcome resistance levels at $52,650 and $56,000 before setting on the course towards the all-time high of $58,355.

Meanwhile, if the bears overcome support at $50,170 (which is the 21-day SMA), then the next support level would be at $50,000.

At the end of last week, MicroStrategy announced another $10 million purchase of Bitcoins. According to a report on Reuters on Mar 5, this would mean that MicroStrategy now possesses close to 91,064 Bitcoins as of Mar 5 and at an average purchase price of approximately $24,119 per Bitcoin.

In the broader market, the U.S. Senate has approved the $1.9 trillion stimulus package. A market mover that could potentially hinder the journey of the Bitcoin bulls is the possibility of a further increase of U.S. Treasury yields. Coin Desk reported on Mar 8 that this might exert pressure on both stocks and Bitcoin.

Meanwhile, let’s see what the week holds in the Bitcoin space.

BTC/USD (as of Mar 8, 2021, 9.40 a.m., GMT +8) - $50,854.72

FOLLOWME BTC/USD User Sentiment (as of Mar 8, 2021 at 10.30 a.m.)

Short – 69.42%

Long – 30.58%